With all the hype surrounding new launches, you might wonder: Are older resale units losing their appeal? Headlines like “June Resale Condo Volumes Plummet by 29.9%” certainly make it seem like the resale market is in trouble. But let’s pause for a moment — what does the data really tell us?
What’s Going On in the Resale Market?
In June, resale condo transactions dropped by nearly 30%, with just 809 units sold compared to 1,153 in May. The biggest hit was seen in the Outside Central Region (OCR), where transactions dropped by a massive 37.5%.
It’s easy to feel panicked by these numbers, but this may not signal a permanent decline. Historically, June has always been a slow month for sales, with activity often picking up around May, thanks to new project launches.
In fact, when we compare the figures to historical data, the 844 resale transactions this June represent a 4.9% increase over the 11-year average. So, it’s not all doom and gloom — just a significant market shift worth noting.
Why are Sales Dropping?
Several factors are contributing to this trend:
1. New Launches are Closing the Price Gap: New condos now have only a 38% price premium over resale units, compared to a 64% difference last year. Buyers are tempted to pay slightly more for the allure of brand-new amenities and warranties.
2. Rising Interest Rates and Cooling Measures: Higher interest rates and government regulations are making buyers hesitant. They’re taking a step back, waiting for better deals or more certainty in the market.
3. Shifting Preferences: With shrinking price differences, some buyers are moving away from OCR units toward properties in the more central regions, reducing resale demand in outer areas.
Why Resale Condos Still Matter?
Despite these challenges, resale units offer advantages that new launches cannot easily replicate:
- Larger unit sizes for families and buyers who value space.
- Prime locations in mature estates with established communities.
- Immediate availability, unlike new launches, which require waiting years for completion.
Opportunities for Buyers and Sellers
If you’re a seller, now’s the time to highlight what makes your property stand out. Emphasize location, size, and unique features, and set realistic prices to attract serious buyers.
For buyers, the current slowdown could create opportunities to negotiate better deals or access areas that were previously beyond reach. If you’ve been eyeing a particular property, this may be your chance to secure it with less competition.
Final Thoughts: Is This the End?
Not at all! While new launches are generating buzz, resale condos aren’t going away. Buyers who prefer space, mature estates, or immediate move-in options will still find value in the resale market. The key is to stay strategic and patient — whether you’re buying or selling, the right opportunity will come if you know where to look!
What’s your next move? Are you holding, selling, or buying?
