The difference in prices between CCR condos and RCR condos has shrunk to its smallest level in 22years
In the third quarter of 2016, the difference in price per square foot (psf) between CCRs, excluding ECs and RCRs was down to 17,5%. This is down from 24,1% and 28,5% respectively in Q1, and 24.1% and 28.5% respectively in Q2.
Christine Sun said, “The third quarter price gap is the smallest it has been since Q3 2000, with 14.5 percent,” she added.
Sun claimed that prices of non-landed resale houses in RCR have risen faster in the last few years than they did in CCR.
Price gaps narrowed after the outbreak of pandemic. Prices of condos for sale in CCR increased by 13,6% in Q3 to S$2,011 and in RCR, they jumped up to S$1,711.
Sun explained the rise in RCR’s price in recent times by pointing out that more condominiums now have temporary occupancy permits. Condo units with temporary occupation permits (TOP) tend to have higher resale values than units that are older.
Singapore’s resale home prices rose in the third period in all market segments.
OrangeTee & Tie, in a Tuesday report (Oct. 24), indicated that in Q3 of 2023 the price for non-landed and landed properties in Core Central Region – excluding Executive condominiums (ECs), had risen by 0.3 % to S$2,087 psf compared with S$2,080 psf Q2 2023.
Prices of houses in Outside Central Region, (OCR), increased by 22% in Q3 of this year to S$1,421/sqft.
In Q3, the number of homes resold in suburban areas or OCR decreased by only 8.8%, from 1.605 to 1464.
Sun is expecting the market to continue its strong demand, especially for condominiums in OCRs or the suburbs.
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This increased supply of homes for sale may also help reduce “runaway home prices on the secondary market.”
Sun predicted that by 2023 the total resale unit volume, excluding ECs, could be 10,000 to 12,000. The resale value may also rise slower, at a rate between 4 percent and 6 percent, compared to an 8.7-percent growth in 2012.
In the RCR, approximately 12,800 homes were awarded TOP from H1 2020 through to H1 2030. These units outnumbered the CCR’s estimated 3,300. Sun also said, “The demand for luxury houses is still higher than that of private homes located on the edge of cities because these are more affordable.”
Due to Hungry Ghost Festival sales and high interest rates, the last two quarterly quarters saw a slowdown in resale. Realis Data from Urban Redevelopment Authority indicates that in Q3 2020, 3,121 units were sold.
CCR saw its resale numbers drop 15.3% from Q2 to 476, while RCR dropped 15% from Q2 to 808 and 954 respectively.