Property prices have been increasing not just for resale flats, but also for resale condos in the past year. According to the SRX report on resale condos published last week, there’s an overall increase of 6.8% from June 2020 to June 2021. The price increase was also seen across all three segments, Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR), over the same period.
In this article, we take a closer look at the prices of resale condos in the RCR. If you’re planning to buy a resale condo in the city fringe, here’s a helpful guide for you to refer to.
Average price of resale condos in the RCR
For simplicities’ sake, in this article, we consider resale condos to be those that have gotten their Temporary Occupation Permit (TOP) in 2020.
In the past one year (21 July 2020 to 21 July 2021), the average price psf of resale condos in the RCR has been hovering at around S$1,400. The price psf increase was 4.70% over the same period.
Looking at the monthly averages, the highest average price psf was S$1,453 in April 2021. This was also when the transaction volume was the highest at 563, before the first Phase 2 (Heightened Alert) started in May.
Freehold vs leasehold: Which is more expensive in the RCR?
Freehold condos are usually priced higher than leasehold condos since they don’t have a limited lease. So they typically carry a 10% to 15% price premium over their leasehold counterparts.
But what’s interesting is that over the past one year, the average price psf of leasehold resale condos has been higher than that of freehold condos.
For instance, the average price psf of freehold condos has been hovering around S$1,300 to S$1,400. On the other hand, the average price psf of leasehold condos has been around S$1,400 to S$1,500.
This could be due to the higher number of freehold units being put up for sale during this time period. As seen on the graph, there’s been a higher transaction volume for freehold units every month except for July 2020. So the higher supply may have pushed down the prices slightly for freehold units.
On the other hand, the price increase is still higher for freehold resale condos. The price psf increase for freehold condos is at 5.85% compared to the 4.95% increase for leasehold condos. This follows the notion that freehold properties tend to appreciate better than leasehold properties.
Average price psf of RCR resale condos based on number of bedrooms
Generally, the average price psf decreases as the number of bedrooms increase. As for the past one year, although there’s been a general price increase among RCR resale condos, the increase hasn’t been seen across all room types.
Here’s a breakdown of the average price psf according to the number of bedrooms.
While these are the smallest units, they command the highest average price psf of around S$1,500 to S$1,600. There’s also a healthy price increase of 5.91%.
2-bedders have been priced lower at around S$1,400 to S$1,500 psf, as compared to 1-bedders. At the same time, among all the room types of RCR condos, the highest price increase has been for these 2-bedroom units at 18.69%.
This may also signal a higher demand for this type of property, as more people require more than one room for their work-from-home arrangement.
3-bedroom units in the city fringe have been commanding around S$1,300 to S$1,400 psf over the past year. In the same period, we’ve seen an increase of 3.35%.
Unlike the smaller units, we’ve seen more pronounced variation in the price of 4-bedroom units in the RCR. For instance, the average price psf has been fluctuating a few times within the past year from S$1,300 to S$1,600.
It could also be why for the past one year, there’s been a decrease in the average price psf by 8.78%.
We think the variation could be due to the smaller volume of 4-bedders sold at 126 units. In comparison, around 400 to 600 units were sold for each type of the smaller units.
Nevertheless, it looks like we’re seeing a price increase again from July onwards, as seen on the graph.
5-bedroom units or larger
Likewise, we’re seeing more variation in the average price psf of units with at least five bedrooms. According to our Researcher tool, there’s been only 10 transactions for this type of resale unit in the RCR.
In the past one year, the average price psf has been mostly around S$1,100. At the same time, there’s one time when it’s as high as around S$1,600 in November 2020. On the whole, the increase is at 2.80%.
To sum up, here’s a table summarising the price psf of resale condos in RCR across room types.
|Price range of average price psf|
|1-bedroom units||S$1,500 to S$1,600|
|2-bedroom units||S$1,400 to S$1,500|
|3-bedroom units||S$1,300 to S$1,400|
|4-bedroom units||S$1,300 to S$1,600|
|5-bedroom units or larger||S$1,100 to S$1,600|
Are you looking for a condo in the RCR? Let us know your options in the comments section below or on our Facebook post.
If you found this article helpful, 99.co recommends How to estimate your property’s value like a pro with 99.co’s Property Value Tool and Here’s how much you need to earn to afford a condo [2021 Edition].
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Looking for a property?
Find the home of your dreams today on Singapore’s fastest-growing property portal 99.co! If you would like to estimate the potential value of your property, check out 99.co’s Property Value Tool for free. Also, don’t forget to join our Facebook community page or Telegram chat group! Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.