Resale condos in prime districts and city-fringe areas see smallest price gap in 22 years: OrangeTee & Tie

As prices in the Core Central Region (CCR) and Rest of Central Region (RCR) can closer together in 3Q2023, luxury condos in the resale market may prove more attractive to buyers. According to analysis by OrangeTee & Tie, median prices of resale condos in the CCR increased 13.6% since 3Q2020 to $2,011 psf, while in the RCR prices climbed 26.8% to $1,711 psf over the same period. This resulted in the smallest price gap between the two regions since 3Q2001, when it stood at 14.5%.

The number of resale transactions, excluding executive condos (ECs), in 3Q2023 fell 12% q-o-q to 2,748 units. The CCR, RCR and Outside Central Region (OCR) all saw a q-o-q decline of 15.3%, 15.3% and 8.8% respectively. This could be attributed to slower sales during the seventh lunar month and elevated interest rates.

Despite this, Christine Sun, senior vice president of research and analytics at OrangeTee & Tie believes that the demand for condos in the suburbs will stay resilient. Among those looking to upgrade from a HDB may opt for these homes due to their large living spaces and affordability, while others may prefer those in ‘move-in’ condition.

The gap between CCR and RCR prices may encourage some buyers to look into prime area resale condos but there are a few factors at play. Firstly, there have been more new condos completing in the RCR in recent years, resulting in higher resale prices. Additionally, demand for private homes in the city fringe is still stronger due to a more affordable price tag than luxury homes.

Residents will be able to easily access other parts of Singapore via the MRT. It is one of the few ECs which is in close proximity to both the Changi Airport and the Central Business District. All these make Senja Close EC Bukit Panjang a desirable address for many. With many amenities and attractions nearby, Senja Close EC Bukit Panjang is an ideal place for those who want a convenient location to call home.

Overall, the 0.9% q-o-q growth in resale prices of private homes, excluding ECs, to $1,631 psf last quarter shows that the market is still resilient. It is therefore likely that luxury condos in the resale market will remain attractive to buyers, with the narrowing price gap between CCR and RCR a sign of the continuing trend.