Condo resale volume dips in August as buyers await rate cut

The condominium resale volume inched down in August a decrease in sales that analysts attributed to buyers waiting for a potential interest rate cut.

Based on flash estimates from SRX and 99.co released on Sept 24, about 1,080 units were resold, representing a 1.7 per cent drop from the 1,099 units transacted in July.

The resale volume was 16.8 per cent higher year on year, and 5.2 per cent higher than the five-year average volume for the month of August.

“While August resale transaction volume is historically slightly higher than July’s since 2020, this year is the first time that transaction volume is lower,” said Mr Luqman Hakim, chief data and analytics officer at 99.co.

The decline comes amid slight negative sentiment in purchasing private condos at this time and would-be condo buyers are waiting for reduced interest rates before making their move, he added.

Some analysts also pointed out that the transaction volume fell marginally despite the Hungry Ghost Festival – indicating resilient demand within the market.

Ms Christine Sun, chief researcher and strategist at OrangeTee, said the resale volume has shown “a notable increase” compared with the same period in 2023.