CONDOMINIUM resale volumes continued to decline for the second straight month in December 2023, falling 10.4 per cent month on month.

Flash data from SRX and 99.co released on Thursday (Jan 25) showed that 743 units changed hands during the month, down from the 829 units in November.

Volume dropped with the seasonal lull and absence of major launches, which muted demand in the secondary market.

“The volume of resale condo transactions to foreign buyers continues to be subdued, following the tightening of the Additional Buyer’s Stamp Duty rates in April 2023,” said Wong Siew Ying, PropNex’s head of research and content.

Year on year, volume was 7.1 per cent higher, but 11.7 per cent lower than the five-year average for the month.

Overall resale prices continued to rise, clocking a fifth consecutive month of increase. Prices rose 0.5 per cent on the month and were up 7.5 per cent on the year.

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In December, resale prices fell 1.2 per cent in the Outside Central Region (OCR) and dipped 0.5 per cent in the Core Central Region (CCR). In the Rest of Central Region (RCR), however, resale prices rose 0.6 per cent.

For the full year, prices rose 7.5 per cent, driven by gains in the RCR and OCR segments. The majority of completed condos were concentrated in these regions, and the higher prices of newer condos boosted overall prices, said Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie.

The RCR led gains with an 8.3 per cent increase, followed by the OCR which added 8.2 per cent and the CCR, which rose 4 per cent. (see amendment note)

About half of resale deals in December were transacted in the OCR, followed by 31.7 per cent in the RCR and 17.3 per cent in the CCR.

Sub-sale transactions accounted for 13 per cent of all secondary sales, up 1 percentage point from the prior month.

Investors could also be offloading their units in view of rising mortgage payments, higher property taxes and limited rental upside due to increased competition, noted ERA Singapore key executive officer Eugene Lim.

Sub-sale transactions refer to sales done before the completion of a project, while secondary sale transactions comprise both resale and sub-sale transactions.

Biggest transactions

The highest transacted price for a resale unit in December was S$12.5 million for a unit in Four Seasons Park.

In the RCR, the most expensive unit, located in Corals at Keppel Bay, sold for S$8.4 million. In the OCR, the highest transacted resale deal was S$4 million for a unit at The Trilinq.

The overall median capital gain for resale condos fell to S$314,000 in December, down S$13,000 from the month before.

District 26 (Mandai, Upper Thomson) posted the highest median capital gain at S$748,000, and the highest median unlevered return at 55.7 per cent. District 8 (Farrer Park, Serangoon Road) recorded the lowest median capital gain at S$100,000. District 2 (Chinatown, Tanjong Pagar) posted the lowest median unlevered return at 10.4 per cent.

Amendment note: An earlier version of this story stated that OCR prices rose 0.5 per cent on the month and were up 7.5 per cent on the year. That earlier version also said the percentage of sub-sale transactions was down by one percentage point. SRX and 99.co have since clarified that OCR resale prices fell 1.2 per cent month on month and rose 8.2 per cent year on year. The percentage of sub-sale transactions has been corrected to indicate an increase of 1 percentage point from the month before.