Singapore, 27 Jun 2023 Condo resale prices climbed for a fourth consecutive month in May on the back of stronger sales, as buyers continue to turn to resale properties, given the sizeable price gap between new private homes and those on the secondary market.
An estimated 946 condo resale units changed hands in May, marking an 8.9 per cent increase from the 869 units resold in April, according to flash data released by real-estate portals 99.co and SRX on Tuesday.
Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said demand from Housing Board flat upgraders may have helped to prop up the volume of transactions in the suburbs, as these buyers turn to the secondary market to avoid paying huge stamp duty fees upfront.
“Many buyers may not have sufficient cash to pay the ABSD upfront, even if they can apply for remission after selling their flats. Therefore, some buyers may choose to buy resale condos that are ready for immediate occupation,” said Ms Sun.
The impact of April’s ABSD rate hikes is also evident in the dip in the proportion of foreign buyers, for whom the ABSD rate has doubled to 60 per cent.