The seasonal slowdown between the closing of the year and beginning of the new year is due in part to the prudent market mood.
The Chinese New Year holiday and celebrations will keep the resale activity in February comparatively low.
Some buyers have been more cautious when buying one due to worries about inflation and an uncertain global economic outlook.
Others could be waiting on the sidelines, as they wait for interest rates to decrease further, which will improve housing affordability.
The number of transactions during January was also 0.4 percent higher than the average over the last five years.
Prices for resales of condominiums fell in January following a rise of five consecutive months. However, property analysts said it is too early to determine whether prices have stabilized.
Flash data from Singapore Real Estate Exchange (SREX) and 99.co, two real estate websites, revealed that resale prices fell by 0.8 percent in January following a 0.5 percent rise in December.
The rates of interest are high, which has reduced buyers’ willingness to pay high prices on resale condominiums. This is why the market slowed prices in the last month.
However, the resale price in the prime sector increased by 1.4 per cent, while those in the suburbs inched up 0.2 per cent.
There have been more high-value transactions in central Singapore, and prices in the suburbs have been boosted by recently completed homes.
The resale value in the city’s fringe dropped by 0.6%, reversing an increase of 0.7 percent in the area in the month of December 2023.
There were also older resales units available at a lower price per sq ft and have greater floor space. They are sought-after by buyers who are looking for their own place to live.
On a year-on-year basis, condo resale prices were up by 7.2 percent while those in suburbs rising the most at 9.9 per cent, data revealed.
It is too early to decide whether the drop in resale prices is just a blip or the beginning of an economic correction.
Prices could continue to rise in 2024 because fewer condos are expected to be built and this could lead to shortages of supply.
Resales volume fell slightly by 0.6 percent in January, with 740 units sold which was down from 745 units in December.
As more residential developments become available in the coming months private home prices will increase.
The increased prices associated with new launches could increase prices of resale condos, and the overall cost of condos could rise from 4 per cent to 6 percent by 2024.
The lion’s share of condo resales in January was recorded in the suburbs, at 53.8 per cent. The suburbs comprised 27.3 percent of all transactions, the remainder being in the prime districts.
The most expensive price paid was $16.5 million each for two freehold 3,057 sq feet units in The Ritz-Carlton Residence, a luxurious condo located in the Orchard area.
The two adjacent properties were purchased separately by Mr Yuan Yonggang, and his wife.
Both are permanent residents of Singapore.
Read more: Parktown Residence
In the city’s fringes, most expensive price paid was $9.28 million for an unfreehold 2,971 sq ft unit in MeyerHouse.
In the suburbs in the suburbs, a 2,573 square foot unit at Grand Duchess was sold for $3.9 million.