In July, resale condominium unit prices increased for the 24th consecutive month, while sales declined as interest rates rose.

According to real estate websites and SRX’s flash numbers issued on Wednesday, condo resale prices grew at a quicker rate of 1.2 percent last month compared to 0.8 percent in June (Aug 10).

According to data, prices were 9.8 percent higher in July of this year than in July of last year.

Meanwhile, sales volume declined 6.7% in July, to an estimated 1,248 units, down from 1,338 in June.

Resale sales plummeted 30.7 percent year on year in July, but were still 4.4 percent higher than the five-year average for the month.

Property specialists blamed the dip on a mismatch in buyer and seller pricing expectations, which was worsened by rising mortgage rates.

According to OrangeTee & Tie senior vice-president of research and analytics Christine Sun, given the uncertainties surrounding global economics, some buyers may be unwilling to match some vendors’ asking prices.

“On the other hand, sellers are under no need to cut their prices,” she noted. “Given the strong housing demand from HDB upgraders and poor supply in the suburbs, some sellers expect prices to grow even further.”

According to Mohan Sandrasegeran, senior analyst at Global Group, the reduction could be related to the debut of AMO Residence, which likely stimulated buyers’ and investors’ interest in the new launch market.

During its July 23 opening, the 372-unit Ang Mo Kio building, the estate’s first significant private residential project in more than eight years, sold more than 98% of its apartments.

There will be some new suburban condo and EC to meet the rising demand. Lentor Modern, Lentor Hills Residences, The Reserve Residences and Tenet EC are the names of the buildings. It is expected to be released in the third and fourth quarters of 2022.

Last month, suburban condos accounted for 59.1 percent of overall condo sales volume. Homes on the outskirts of the city accounted for 24.6 percent of the total, with the remaining 16.3 percent being in central Singapore.

Wong Siew Ying, PropNex Realty’s head of research and content, noted that HDB upgraders and owner occupiers have helped to push sales and prices in the suburbs, as some buyers look to the mass market for more cheaply priced private condominiums.

“Generally, we expect would-be purchasers with a tighter housing budget to continue to seek the secondary market for purchasing possibilities amid firm brand new pricing and rising loan rates,” she said. In other words, “we anticipate that would-be buyers would continue to go to the secondhand market for purchasing possibilities.”

Ms Wong also claimed that higher demand will assist to keep resale prices stable this year.

“However, we expect the price increase to be modest, and buyers should be on the lookout for mortgage rate hikes,” she said.

Mr Sandrasegeran also stated that HDB upgraders, overseas buyers, and high-end buyers are pushing up resale condo prices.

In July, the largest selling condo transaction was $22.28 million for a unit at Tanglin’s Le Nouvel Ardmore, a premium freehold building.

The most expensive transaction on the outside of the city was $5.5 million for a 99-year leasehold apartment at Echelon in Alexandra.

In the suburbs, a 99-year leasehold unit at Double Bay Residences in Tampines sold for $3.4 million.