Condo Resale Prices Firm 1.3% in May Even as Volume Eases to 989 Units

The Core Central Region (CCR) led the price rebound in May, with resale prices rising 3.7% month-on-month to an index of 230.8. This was the strongest monthly gain among the three regions and a sign of renewed appetite for prime addresses. The CCR accounted for about 181 units, or 20.1% of monthly resale activity.

The Outside Central Region (OCR) rose 1.6% month-on-month to 285.5, extending its steady upward trend. OCR again led the market on volume at about 428 units, accounting for the largest share (47.6%) of May resale activity as upgraders and owner-occupiers continued to favour the suburbs for value and space.

The Rest of Central Region (RCR) was the only segment to soften, with its index slipping 0.7% to 294.0. RCR resale volume came in at about 290 units, holding a 32.3% share of monthly transactions. The month’s highest resale transaction was recorded here: $19,280,000 at Reflections At Keppel Bay, a waterfront landmark in the HarbourFront precinct.

The top end of the resale market remained active in May. The standout deal at Reflections At Keppel Bay in the RCR underscored continued demand for distinctive, well-located waterfront homes. In the CCR, Nassim Park Residences transacted at $15,600,000, reflecting sustained appetite for low-density freehold living in the prime Nassim enclave. Thomson Grove in the OCR recorded the highest suburban resale at $4,138,000, showing that premium buyers will pay for spacious, established homes in mature city-fringe locales.

The broader market posted a healthy median capital gain of $419,000 and a median unlevered return of 30.8% on resale transactions. These transactions remain exceptions rather than the norm, with high-end resale demand increasingly driven by specific attributes such as freehold tenure, larger floor areas, scarcity, and established addresses.

The widening gap between new-launch and resale prices continued to support secondary demand. With Hudson Place Residences transacting at about $2,465 psf, some buyers turned to resale homes for better value, larger layouts, and immediate occupancy. The combination of softer volume and firmer pricing suggests demand was still largely driven by owner-occupiers and long-term holders rather than short-term speculative activity.

The resale market is likely to keep benefiting from the new-launch pricing gap, particularly in the OCR. Demand should remain supported by HDB upgraders and owner-occupiers seeking larger homes and immediate move-in options. Price growth is expected to stay moderate as buyers remain selective amid economic uncertainty, but May’s 1.3% monthly gain and 3.7% year-on-year rise point to firm underlying values even as volumes ease.

Looking ahead, resale activity is expected to remain uneven but supported. Buyers are likely to continue comparing resale homes against new launches on total quantum and readiness for occupation, while sellers may need to price more realistically to close deals.