Resale Condo Market Performance in 2023

The resale condo market took a step back this year, recording slower sales activity compared with previous years. Caution prevailed over the market throughout the year, with buyers reeling from the elevated interest rates, muted global economic growth, as well as the higher stamp duty rates being levied on investors and foreign buyers. In 2023, under 10,000 condo units changed hands in the resale market. Despite falling short of the over 16,300 units resold in 2021 and the over 12,000 units resold in 2022, resale prices in 2023 continued to rise over the past year. The average price of resale non-landed private homes came in at $1,627 psf in 2023, up by 7.5% from $1,514 psf in 2022.

Suburban condo projects dominate top 10 gainers list

In a ranking of the average profit, the top 10 projects in 2023 were made up of Rest of Central Region (RCR) and Outside Central Region (OCR) projects – there were no Core Central Region (CCR) projects in the top 10 list (see Table 1).

Table 1: Top 10 resale condo projects^ in terms of average gross profit*

Source: PropNex Research, URA Realis

^projects with fewer than 20 transactions in the month are excluded from this analysis

*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.

#Annualised gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] ^{time period in years}-1

Analysis was done based on available data from URA Realis

Suburban condo projects dominate top 10 most popular projects  

With the moderating supply of unsold mass market homes in 2023 and benchmark prices for new launches, buyers continued to dip into the resale market to purchase homes. In 2023, by ranking the projects in terms of resale volume, the top 10 transacted projects comprised a number of OCR projects (see Table 2). Many of these projects are almost brand new and are mostly in good physical condition – a plus for owner occupiers looking to move in quickly. 

In terms of gains, these projects pale in comparison to the top 10 most profitable projects (in Table 1 above), since many of them were recently-built and have been bought at higher entry prices than the older projects. Also, most of them likely had relatively shorter holding periods, which offered a shorter runway for values to appreciate.

Table 2: Top 10 resale condo projects^ in terms of number of units transacted

Source: PropNex Research, URA Realis

^projects with fewer than 20 transactions in the month are excluded from this analysis

*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.

#Annualised gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] ^{time period in years}-1

Analysis was done based on available data from URA Realis

The second top selling project was Kingsford Waterbay, a fairly new project that was completed in 2018. The project in District 19 sold 73 units on the resale market in 2023, with average gains of nearly $150,000 or average annualised gains at 2.25% per year.

Meanwhile, the third most popular project was another development that was completed recently in 2019; High Park Residences located in District 28 sold 72 units in 2023. The average gains in the project had amounted to nearly $350,000 per transaction or average annualised gains of 5.36% per year.

Central districts posted best gains in 2023

On a district level, the Central Region pulled in bigger gains in terms of profit quantum. By ranking of the gross profit, the top 10 districts were mostly in the city centre or city fringe – only two districts in the suburbs, D26 (Upper Thomson) and D22 (Jurong) made the top 10 rankings (see Table 3).

Table 3: Top 10 districts for resale condo transactions in 2023 by gross gains*

Source: PropNex Research, URA Realis

*Gains are derived from the resale transaction for each unit against the unit’s last caveated transaction; the average profit is determined on the profits of all resale transactions in the development which occurred during the month. The profit reflected is gross – it has not accounted for the applicable seller’s stamp duties, interest payable, taxes and other relevant divestment costs.

#Annualised gains is the compounded annual rate of return which shows the rate of return over the time period between the point of resale and the property’s last caveated transaction, expressed in annual percentage terms. The formula for determining this is simply: [(current resale price) / (purchase price)] ^{time period in years}-1

Analysis was done based on available data from URA Realis

Meanwhile, the second most profitable district was District 21 (Upper Bukit Timah), where 282 homes were transacted for an average profit of more than $670,000 per transaction. A number of condominium projects along Bukit Timah Road have garnered decent gains – finding favour with buyers who like the city fringe location, and proximity to good schools.

Coming in at third place, District 15 (Katong, Joo Chiat) achieved over 700 resale condo transactions, with an average gross profit of more than $640,000 per transaction. Owners of homes along the eastern coast have been enjoying decent gains with the gradual gentrification of the area and the improvement in transport infrastructure, such as the new Thomson-East Coast Line (TEL).

District 26 is another area which has benefited from the newly-constructed TEL which commenced its phase 3 operations in November 2022 – linking commuters in the North to Orchard Road and the central business district. Slightly less than 60 homes in the upper Thomson area were resold at an average gross profit of more than $600,000 per transaction. Also, the launch of several new projects in the Lentor Hill estate - some at benchmark prices of $2,100 psf - have helped to boost prices of resale projects in the vicinity.

City centre and waterfront developments had the most expensive resale condos

Expectedly, the priciest resale condos were transacted in the city centre and waterfront areas.

Over at the city fringe, the most expensive resale unit sold in 2023 was a 23rd-storey unit at Reflections at Keppel Bay, which fetched $17 million in March 2023. The project’s popularity stems from its proximity to the future Greater Southern Waterfront (GSW), which will be an iconic waterfront precinct in Singapore.

In the suburbs, the most expensive resale condo unit was found at Ocean Park, an older development built in 1984 located along East Coast Road in Bedok. The 20th floor unit was sold for nearly $5.3 million, reflecting a unit price of $1,616 psf.

 Source: PropNex Research, URA Realis

In the city fringe, a 4th floor unit at Corals at Keppel Bay - with a floor area of 3,100 sq ft - was sold for $9 million, translating to a unit price of $2,903 psf. Completed in 2016, Corals at Keppel Bay is a luxury waterfront development in the RCR.

Over in the suburbs, the most expensive transaction on a per square foot basis was for a 12th floor unit at Seaside Residences. Condos at the recently-completed Seaside Residences have been selling at unit prices over the $2,000-psf mark. The top transaction in the suburbs, in terms of unit price, was for a 1,206-sq ft unit which changed hands for $2.99 million, reflecting a unit price of $2,487 psf. Residents of this project enjoy unblocked views of the East Coast Park beach, and excellent connectivity - being next to the East Coast Parkway (ECP) and the upcoming Siglap MRT station on the TEL.