SINGAPORE – Condominium costs in Singapore continued to rise final month, inching up by 0.8 per cent to mark the sixteenth consecutive month of value rises, based on flash figures by 99.co and SRX Property launched on Tuesday (Dec 14).
In contrast with November final yr, costs are up by 9.3 per cent, information confirmed.
The 16-month rally is the “longest ever for the reason that inception of our apartment resale index in 2013”, stated Mr Pow Ying Khuan, head of analysis at 99.co.
“It’s stunning that the rise in costs lasted for thus lengthy,” Mr Pow stated.
He added that the longest rally earlier than this was in the course of the 12 months between August 2017 and July 2018.
The information additionally confirmed {that a} complete of 1,636 resale models had been offered final month, up 2.1 per cent from October and up 21.8 per cent from November final yr.
Mr Pow stated the excessive demand for resale condos is being fuelled by low mortgage charges.
“Rates of interest from all the main banks are nonetheless fairly low now. If that is so, then the value rally could proceed as extra patrons look to transact earlier than charges rise sooner or later.”
It’s because the financial savings from locking in low mortgage charges and repayments offset the rise in property costs, Mr Pow stated, including that larger mortgage charges can result in hefty rises in total repayments, particularly if the value of the property is already excessive.
Final month, the general median capital acquire amounted to $225,000, which is up $4,040 from October. District 10 (Tanglin, Holland and Bukit Timah) posted the very best median capital acquire at $516,950, whereas District 17 (Changi Airport and Changi Village) posted the bottom median capital acquire at $85,700.
In line with the info, greater than half the properties offered for the month had been positioned within the exterior central area (OCR) of Singapore. The very best transacted value for a resale apartment unit within the OCR was $3.6 million for a unit at The Imaginative and prescient in West Coast Crescent, the info confirmed.
However the highest transacted value final month was for a unit at Alba, a freehold apartment growth at Cairnhill within the core central area, which offered for $26.4 million.
In the remainder of central area, the costliest resale unit was the one at Aalto, positioned in Meyer Street, which offered for $11.5 million.
Wanting forward into the subsequent yr, Mr Pow is anticipating costs to stabilise round present ranges.
“We do not assume costs will appropriate a lot right here as they’re nonetheless reasonably priced and never unsustainable.”
Different actual property specialists agreed.
In its 2022 outlook report, property market PropertyGuru stated it expects property costs to proceed rising for many of subsequent yr.
Property demand will proceed to be pushed by HDB upgraders and rich Singaporeans, in addition to international patrons as extra vaccinated journey lanes proceed to roll out as deliberate, the report stated.
About 11 new personal property tasks are anticipated to come back onstream subsequent yr, with eight, together with two govt condominiums, positioned within the OCR, based on PropertyGuru information.
These embody three mega built-in developments in Marina View, Jalan Anak Bukit and Lentor Central.
Nonetheless, whereas a sudden spike in rates of interest subsequent yr is unlikely, rising international rates of interest will inevitably lead to a gradual improve in Singapore mortgage charges.
“Rates of interest could rise in the long term however are more likely to stay low within the brief to medium time period,” stated Mr Paul Wee of PropertyGuru Singapore.
As such, “house house owners are suggested to be cautious about taking up important new money owed and pay discover to the altering financial situations which can be taking part in out”.
