According to The Strait Times Singapore (last updated in December 2020), the local real estate market continues to rebound strongly as sales volume rises for four consecutive months. This is because it finally recovered from the COVID-19 fallout and the 2018 cooling measures. 

This November marks the fourth month that overall resale prices increased after a slow second quarter this year, including the circuit breaker period driven pent-up. Prices for condos for sale rose to a 0.3% increase this month, according to figures from the real estate portal SRX Property (last updated on December 14). Year on year figures also show that prices are up by 1.3%.

The price increase included resales from across all of the city-state. According to month on month figures, prices in the core central region (CCR) were up by 0.5%, prices in the rest of the central region (RCR) had a humbler increase of 0.1%, and lastly, prices in the outside central region (OCR) rose to 0.3%.

When it comes to private condo transactions in the property market, resale volume increased by 1.4% this November compared to the previous month, totalling 1,426 units sold. This number is 83.5% higher based on SRX’s year-on-year figures. It’s also 76% higher than the five-year average sales volume.

On the other hand, in terms of the overall number of private home resales, there were a total of 9,200 units sold in the first 11 months of 2020. This number already surpassed the 8,949 units that were sold in 2019. According to PropNex head of research and content Wong Siew Ying, the private home resale volume could reach the 10,500-unit mark this year. However, it’s not likely that it could surpass the 13,009-unit sales volume recorded in 2018.

This is good news for many property investors in Singapore. Demand and prices have gone down since property cooling measures were put into effect in July 2018. As a result of the measures, monthly transactions fell below 1,000 units. But based on data from the last four months of this year, monthly sales had already exceeded 1,000 units.

This property market rebounded after a slow second quarter this 2020, which included the circuit break period driven by pent-up demand. This rebound is a more accurate match in price expectations between home buyers and sellers. According to PropNex’s Wong Siew, this is also a vital sign showing that the local economy continues to recover after being hit hard by the worldwide pandemic.

She also told The Strait Times Singapore that “with healthy demand coming through, we expect sellers to keep asking prices firm or start raising the prices of more attractive units.”

Christine Sun, head of research and consultancy at OrangeTee & Tie, agrees with Wong. She believes that the majority of Singapore’s property investors have already started looking past the current headwinds. They’re now banking their hopes on the success of the vaccine rollout and the recovery of the global economy, anticipating better profit returns in the near future.

Sun told The Strait Times Singapore that “we anticipate that sales of resale homes will continue to rise by about 8% to 10% next year.” This is equivalent to 9,000 to 10,000 units. In addition, resale prices can still possibly rise to 1% in 2021.

An example of condo units fetching better prices was the transaction in Nassim Jade. A condo unit in this freehold condominium was sold for a whopping $11.7 million on November 27. This marks the highest recorded resale price in the entire month of November.

The aforementioned unit was a 5,038 sq ft penthouse unit with five bedrooms. The seller originally purchased the condo unit in October 2005 for a lower price of $5.65 million or $1,222 psf. This meant that the seller walked away with a massive 107% profit return of %6.05 million.

Nassim Jade is a luxury condominium located on the prestigious Nassim Road in District 10. The development was completed in 1997 and consisted of 39 homes spread across four storeys.

This transaction is also considered the most profitable deal in Nassim Jade’s history. The previous record-holder was a resale of a 2,153 sq ft unit sold for $5.1 million and earned a 104% profit of $2.6 million.

Are you looking for a condo for sale or rent on Nassim Road? Get in touch with a property agent now, or contact us for available units for sale or rent.

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