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Condominium Resale Prices Breakthrough


Over the past few months, the pandemic has seen rising cases all around the world. As disheartening as that sounds, that is not the only rising trend.


In much more positive news, the private resale market also saw a soar in prices just last month, hitting a new high and continuing the upward price trend. This comes despite dipped sales volume of resale condominium units as tightened COVID-19 measures restrict property viewings.


You may be wondering, why are prices hot on the plate even with a cooled off sales volume? We’ve broken down some of the underlying factors below.


HDB Upgraders

It turns out, pandemic cases and private property resale prices are not the only rising trends. There has been a sharp increase in the number of HDB owners meeting the 5-year minimum occupancy period (MOP), and looking to upgrade to a private property in hopes of riding on real estate capital gains to grow wealth. This increased demand is one of the key reasons driving the price increase, and with a bumper crop of BTOs scheduled to hit MOP over the next few years, market experts are projecting a sustained increase in demand, and in prices.


Talks of Cooling Measures

Nothing drives action more than urgency. With talks of potential cooling measures being on the horizon for months now, many buyers and investors are rushing to close the deals on their preferred properties now, before any measures kick in. Potential measures being floated include a higher Additional Buyer Stamp Duty (ABSD), and a decreased Loan-to-Value (LTV) ratio, both making it harder, and more expensive for buyers to purchase properties. For buyers, the increased sense of urgency is pushing them to make their purchases as soon as possible, before any cooling measures are implemented, driving up demand and resulting in higher prices.


Market Forecasts

Although the current Phase 2 (Heightened Alert) restrictions have put a slight dampener on sales volumes, experts are forecasting that demand will shoot back up once restrictions are lifted. The temporary nature of these restrictions means many sellers are reluctant to amend their prices to a lower figure, with some even increasing their asking prices in anticipation, driving the sustained increase in prices.


How will this impact the overall private resale market, then? Can we expect the sales volume to drastically increase once the restrictions are lifted?


With prices having continued to rise dramatically over the past year, there’s no reason to think any differently in the future. In fact, with the various key drivers pushing prices up, there’s a strong likelihood that prices will continue to rise further, as demand continues to push them up. For homeowners and homebuyers, this means it’s the perfect time to take advantage of this market opportunity, and start investing in a property that will gain you maximum value, and high capital gains. Not sure how to take advantage of the current market opportunity? UnlockHome helps you unlock the value of your home, giving you maximum value and premium services, all for just 1%! Visit us at www.unlockhm.com, or drop us a call or message today!


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