Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
The absence of foreign buyers has actually also added to plateauing rates, with average prime non-landed home costs seeing only a marginal half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is also 10.9% less than the typical price of $2,652 psf in 1H2023.
This accompanies a surge in deluxe condominium deal quantity from 72 deals in 2H2023 to 98 exchange 1H2024. The increase in transactions was greatly fuelled by buyers wanting family-sized, ready-to-move-in units mostly for very own stay, Knight Frank’s head of non commercial and nonpublic office space Nicholas Keong marks.
Muted offshore buyer need is anticipated to carry on evaluating on the deluxe apartment market, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are additionally emerging as a lot more selective in their search for deluxe properties.
As a result, home sellers in the secondary market might be under the gun to readjust price requirements to prevailing market levels. Keong expects the rise in prime non-landed home costs to be in between -1% and 2% for the whole year.
The leading best non-landed home transaction in 1H2024 was the sale of a penthouse at the 190-unit Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th level shifted hands at $47.3 million, or $6,100 psf. The unit was acquired by a foreigner of an unspecified race, based on caveats lodged.
However, the high added home buyer’s stamp obligation rates have actually remained subdue demand from offshore buyers. This has actually resulted in the prime housing market charting 2 consecutive half-yearly periods where total sales price was much less than $1 billion.
Other purchases that made the top 5 based on price quantum in the same duration were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Street. The units were each offered in April and cost at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Road, two units changed hands in January for $16.5 million each.
Prime non-landed houses viewed a half-yearly rise of 28.2% in profits value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 top non-landed non commercial report.
