According to analysts, the market is facing a backlog of demand, and resale volume is expected to reverse its decline after the Lunar New Year as new private residential projects are likely to be launched after the Lunar New Year, which is expected to boost resale sales activity.

Estimates released by property website 99.co and Singapore Real Estate Syndicate (SRX) on Tuesday (Dec 13) showed that resale prices of private homes in the Central Core Region (CCR), which represents high-end private homes, rose the most at 2.7 percent.

Resale prices in the Other Central Region (RCR), representing mid-range private housing, and Outside Central Region (OCR), representing mass market private housing, rose 1.8 percent and 0.1 percent, respectively.

When compared to the same period last year, overall resale prices increased by 10.8%. Resale prices for upscale, midscale and mass market private homes increased by 7.8%, 12.2% and 10.8%, respectively.

Resale volume fell for the second consecutive month, with 1,124 private residential units changing hands in November, 9.4 percent fewer than the 1,240 units sold in the previous month.

Despite the government's new round of property cooling measures, condominium resale prices continue to rise," said John Mak, head of ERA's Industrial Research and Advisory Department. This is probably because sellers are still unwilling to lower their prices and buyers in need of housing have no choice but to buy at higher prices."

As for the reason for the decrease in resale volume, John Mak believes that in addition to the impact of the cooling measures, another factor is the quieter transactions at the end of the year. He expects resale volume to remain low until the Lunar New Year next January.

"Apartment resale volume is expected to increase in February and March next year, partly due to the market facing backlog demand and the spillover effect from the possible launch of new private residential projects after the Lunar New Year. There are an estimated 30 new private residential projects coming on the market next year."

Sun Yanqing, director of research and consulting at Orangetee & Tie, said, "More people are likely to travel abroad this year as most countries no longer require travelers to be tested for coronary disease and air travel has almost returned to the situation before the outbreak. As a result, fewer people are looking at properties during this period and sales activity is down."

"In addition, some owners may choose to continue to hold condominium units because the current rental market is very strong and rental income is high."　

Sun Yanqing said more condo projects will be completed next year, which could put downward pressure on resale condo prices. Nonetheless, condominium resale volume is expected to remain solid next year. The market is more in demand for some affordable resale condominiums, especially mid-sized and large units in the suburbs, than for new condominiums.

She predicts that condominium resale prices will rise a further 5 to 8 percent next year, with resale volume reaching approximately 10,000 to 12,000 units.

Wong Siew Ying, head of research and content at Bona Industrial (Propnex), believes that potential buyers will continue to turn their attention to the resale market, given the lack of new projects outside the Central District and the reduced inventory of unsold units.