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

With prices of private resale condos in the Core Central Region (CCR) growing at a slower rate than those in the Rest of Central Region (RCR) and Outside Central Region (OCR), the gap between these two areas has narrowed substantially. According to OrangeTee & Tie’s research report, the price gap between the CCR and RCR decreased from 24.1% in 2Q2023 to 17.5% in 3Q2023 – the smallest gap recorded since 3Q2001.

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This shift has been fuelled by rising prices in the RCR and OCR, which climbed 2.2% and 1.3%, respectively, on a q-o-q basis, versus 0.3% growth in the CCR. Just between 3Q2020 and 3Q2023, median prices of resale condos in the CCR increased 13.6% to $2,011 psf, while median prices of resale condos in the RCR went up 26.8% to $1,711 psf.

Analysts attribute the rise in RCR prices to the large volume of condos completing in the area over the last few years, paired with greater demand for affordable properties. Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, explains that “HDB upgraders prefer such homes for their big living spaces and affordability. Others may like resale homes that are well maintained and in ‘move-in’ condition.”

In terms of volume, the number of private home resale transactions excluding executive condos in 3Q2023 declined 12% q-o-q to 2,748 units. In the CCR and RCR, resale volume decreased 15.3% q-o-q to 476 and 808 units, respectively. The OCR saw the most moderate change at 8.8% q-o-q to 1,464 units.

Overall, the narrowing gap between CCR and RCR prices may make luxury condos in the resale market an attractive option for prospective buyers. In addition, resale condos in the suburbs remain popular with Singaporeans for their value and convenience.