This decline can be attributed to investor caution resulting from high interest rates. However, it is worth noting that sales in Q1 2023 were slightly higher than the 23 shophouses sold in the second quarter of 2020 when pandemic restrictions severely impacted market activity.
Comparing to the previous quarter, the number of transactions in Q1 2023 decreased from 35, representing a 46% year-on-year decline from 52 transactions in Q1 2022.
Despite the decrease in transaction volume, average transacted prices remained resilient in Q1 2023 due to a limited number of properties available for sale. More than 80% of the properties were sold for over S$5 million, indicating a higher proportion compared to the previous quarter and Q1 2022.
However, the overall transaction value of deals declined by 11.7% from the previous quarter, amounting to S$278 million. This figure also represented a significant 40.6% decrease compared to the same period in the previous year. The first quarter of 2023 recorded the lowest quarterly transaction value since Q3 2020 when transactions totaled S$181 million.
Regarding district performance, there were variations in average prices based on land area. Districts 1 and 2, as well as Districts 14 and 15, experienced a decline in average prices quarter-on-quarter for both freehold and 999-year leasehold properties. Conversely, Districts 7 and 8 witnessed price increases from the previous quarter.
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