Resale condominium market in gradual recovery

Could a slice of sunshine be sliding its way back into the local private property market? Resale condominium prices have risen 1.1% in January and it’s a bigger increase than the 0.5% in the last 2 months of 2016.

RivervaleCrestAnd as expected, non-landed private residential properties located in prime districts lead the way, with a 1.9% month-on-month increase. Central region properties also gained 1.5% in terms of prices while that of suburban properties rose by 0.4%. In a year-on-year comparison, resale prices were 0.3% higher than in the same period of 2016.

In some districts, resale properties exchanged hands at lower-than-market value, though the price difference at minus $4,000 is lesser that the $5,000 in December. District 23 posted more than 10 resale transactions in January alone and selling prices went as high as $2,000 above market value.

GrandeurParkResidencesThough the year is still young, it could be a budding sign of the things to come for the rest of the year. Property analysts are not expecting sharp rebounds anytime soon, though the stabilisation of prices and an increase in sales volume would already be sufficient to signify market recovery, albeit a gradual one. What could also be seen from the market data was that sellers were beginning to moderate their asking prices, possibly with pressure coming in from new property launches and completed new units entering the weak rental market.

 

Aljunied Condominium to be sold

The Avant received its temporary occupation permit (TOP) last year, and already has a single tenant who rented all 50 units, but now these units will be sold on the open market. How does this work?

Suites@Guillemard condominium

Suites@Guillemard condominium

The buyers of this property will be purchasing the entire development and thereafter be able to receive rent from the existing tenant or sell the property en bloc, or one unit at a time. The Avant is a 99-year leasehold condominium project with 50 units made up of studio, one-bedroom and two-bedroom units. 43 units are less than 540 sq ft. Small, compact but rental yields are projected at a 3 per cent annual rise. Similar properties nearby such as Suites @ Guillemard and Suites @ Sims have all done well in recent months, with prices going at $1,500 to $1, 900 psf.

The developer-owner of The Avant is hoping to receive maximum prices for the property through the sale and although initially planned for long-term investment, many offers have since been made for the purchase of the property. If the sale is successful, will the new owner or developer be putting out single units for sale in the open market? Will this mean more competition for properties nearby or better prices all around? Are buyers still looking out for small apartments and will the seller be able to ride the resale home wave in time?