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

This makes it easy for residents to travel to favorite parts of the city. With its great views, Champions Way Condo has it all, from convenience to an unrivalled lifestyle. This stunning residence also features many luxurious amenities such as a sky terrace, an infinity pool, a well-equipped gym, and more. With its excellent location and superior facilities, it’s no wonder Champions Way Condo is the premier choice for those who seek comfort and convenience.

The resale market for luxury condos may be a more appealing proposition for buyers now, as the gap in prices between the prime areas and the city fringe is shrinking, according to a recently published research report from OrangeTee & Tie. During 3Q2023, prices of private resale homes (excluding executive condos) increased 0.9% q-o-q to $1,631 psf, being driven by a 13.1% jump in landed resale prices. Meanwhile, the resale non-landed segment declined 0.9% q-o-q.

In each of the three regions, the Outside Central Region (OCR) saw the most growth in resale prices with a 2.2% q-o-q increase to $1,421 psf. This was followed by the Rest of Central Region (RCR) with a 1.3% q-o-q rise to $1,744 psf, and the Core Central Region (CCR) with a 0.3% q-o-q increase to $2,087 psf.

Additionally, the disparity in resale prices between the CCR and RCR has been narrowing. In 3Q2023, the difference went from 24.1% to 17.5%, which is the smallest since 3Q2001 when the gap stood at 14.5%. This can be put down to post-pandemic resale price increases in the RCR growing faster than the CCR, with median prices climbing 26.8% since 3Q2020 to $1,711 psf.

Nevertheless, the performance has been quite different from pre-pandemic trends. From 2Q2017 to 2Q2020, median prices of CCR resale condos increased 15%, higher than the 8.5% for the RCR. OrangeTee & Tie senior vice president of research and analytics, Christine Sun, explains this discrepancy by pointing to the higher number of new condos being built in the RCR, as well as the desirability of private homes which are more affordable than the luxury ones.

In terms of volume, the number of resale transactions excluding ECs fell 12% q-o-q in 3Q2023 to 2,748 units, blaming the slower sales during the seventh lunar month and the higher interest rates. The CCR and RCR experienced a 15.3% qo-q dip, while the OCR saw an 8.8% q-o-q decrease.

The narrowing of the price gap between the CCR and RCR has encouraged some buyers to consider resale condos in prime areas. According to Sun, there is still robust demand for properties in the suburbs, as they are more spacious and affordable. This, combined with some homes being in ‘move-in’ condition, makes them even more attractive.