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

As prices of private resale homes in Singapore continue to rise, the gap between resale prices in the Core Central Region (CCR) and Rest of Central Region (RCR) has been narrowing, according to an October research report by OrangeTee & Tie. This gap stands at a record low since 3Q2001, and has been reducing significantly since the onset of the pandemic in 2020.

The report stated that last quarter, excluding executive condos (ECs), private resale homes saw a q-o-q growth of 0.9%. Prices in the landed segment surged 13.1%, while the non-landed segment dipped 0.9%.

The Outside Central Region (OCR) saw prices climb 2.2% to $1,421 psf, while in the RCR, prices rose 1.3% to $1,744 psf. Prices in the CCR inched up 0.3% to $2,087 psf, narrowing the gap since the onset of the pandemic when it stood at 53.9%.

From 2Q2017 to 2Q2020, median prices of CCR resale condos rose 15%, while median prices of RCR saw 8.5% growth over the same time period – an indication of the faster price appreciation in the RCR since the pandemic.

The number of resale transactions, excluding ECs, fell 12% quarter-on-quarter to 2,748 units. Sales in the CCR and RCR declined 15.3%, while the OCR saw a dip of 8.8%.

Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, pointed to the influx of new condo units in the RCR as a factor underpinning higher resale prices. Additionally, she noted that the affordability of private homes in the city fringe have made them sought after.

Despite the narrowing price gap between prime and suburban resale condos, Sun expects demand for suburban homes to remain strong, particularly with HDB upgraders in the market. She adds that some buyers may prefer well-maintained, ‘move-in’ condition resale homes.

The JRL, slated to be completed in stages until 2028, will open up a range of new employment and recreational opportunities. As its future residents, the folks of Lumina Grand EC will be able to get to their destinations seamlessly via the swift and reliable service. It’s even projected to be five times faster than the current bus journey! Additionally, they will gain access to an expansive area with work, shopping, dining, and entertainment spots. With the Jurong Region Line, every breathtaking moment within the vicinity of Lumina Grand EC will be easily accessible.

Overall, luxury condos may be more attractive to buyers as prices in prime districts and the city fringe continue to narrow in the resale market.