SINGAPORE – Condominium resale prices dipped in January after rising for five consecutive months, but property analysts said it is too early to determine if prices are stabilising.

Resale prices declined 0.8 per cent in January, reversing the 0.5 per cent climb in December, flash data from real estate portals Singapore Real Estate Exchange and 99.co showed on Feb 26.

Mr Mark Yip, chief executive of property company Huttons Asia, said interest rates have remained high, limiting buyers’ willingness to pay high prices for resale condos, which moderated prices in January.

Even then, resale prices in the prime segment continued to rise by 1.4 per cent, while those in the suburbs inched up 0.2 per cent.

Mr Eugene Lim, real estate firm ERA Singapore’s key executive officer, said there have been more high-value transactions in core central Singapore, and prices in the suburbs have been propped up by recently completed homes.

He noted that resale prices in the city fringe fell by 0.6 per cent, back-pedalling a 0.7 per cent rise in the area in December 2023.

“There were more older resale units that were sold at a lower price per sq ft and have larger floor area. These are popular among buyers who are looking for their own stay,” he said.

On a year-on-year basis, condo resale prices were up by 7.2 per cent, with those in the suburbs rising the most at 9.9 per cent, data showed.

Ms Christine Sun, chief researcher and strategist at property firm OrangeTee Group, said it is too early to decide if the decline in resale prices is just a blip or the beginning of a market correction.

She added that prices could continue to rise in 2024 as fewer condos are expected to be completed, which could result in a supply pinch.

Resale volume dropped slightly by 0.6 per cent in January, with an estimated 740 units changing hands, down from 745 units in December. This marks the third consecutive month of declining resale volume.

Ms Wong Siew Ying, head of research and content at real estate firm PropNex, attributed the drop to the cautious sentiment in the market, and the seasonal lull from the year-end period and the beginning of the new year.

“We expect February’s resale volume to remain relatively muted in view of the Chinese New Year holidays and festivities,” she said, referring to the festival from Feb 10 to 24.

Ms Sun said some buyers have been more cautious about buying a unit because of concerns about inflation and an uncertain global economic outlook.

“Others could be waiting on the sidelines as they hope interest rates will moderate further, which will improve housing affordability,” she added.

However, compared with January 2023, resale volume was up 43.7 per cent – an indication that the resale market is still healthy, said ERA’s Mr Lim.

The number of transactions was also 0.4 per cent higher than the five-year average for the month of January.

Mr Nicholas Mak, chief research officer at property search portal Mogul.sg, said he expects private home prices to pick up as more residential developments are launched in the coming months.

The higher prices of the new launches would boost the prices of resale condos, and overall condo prices could rise by 4 per cent to 6 per cent in 2024, he added.

The lion’s share of condo resale transactions in January was recorded in the suburbs, at 53.8 per cent. Homes in the city fringes accounted for 27.3 per cent, while the remaining 18.9 per cent were in the prime district.

The highest transacted price was $16.5 million each for two freehold 3,057 sq ft units at The Ritz-Carlton Residences, a luxury condo in the Orchard area.

According to property portal EdgeProp, the two adjacent units were bought separately by Mr Yuan Yonggang, chairman of Chinese manufacturing company Suzhou Dongshan Precision Manufacturing, and his wife, Ms Wang Wenjuan.

Both are understood to be permanent residents in Singapore.

In the city fringes, the highest transacted price was $9.28 million for a freehold 2,971 sq ft unit at MeyerHouse in Tanjong Katong.

In the suburban areas, a 2,573 sq ft unit at Grand Duchess At St Patrick’s, a freehold condo in Marine Parade, was sold for $3.9 million.