Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank

Muted offshore client demand is expected to carry on evaluating on the luxury apartment industry, Knight Frank’s Keong notes. At the same time, Singaporean home clients are also emerging as much more discerning in their hunt for deluxe properties.

Some other purchases that made the top five based on cost quantum in the same period were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Roadway and Dunearn Road. The units were both marketed in April and cost at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Road, 2 units shifted hands in January for $16.5 million each.

The absence of overseas buyers has also contributed to plateauing prices, with average prime non-landed home rates viewing just a low half-yearly rise of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% lower than the typical cost of $2,652 psf in 1H2023.

Nonetheless, the high additional purchaser’s stamp responsibility charges have remained subdue demand from offshore buyers. This has actually led to the prime residential industry charting two succeeding half-yearly periods where overall sales value was less than $1 billion.

This accompanies a rise in high-end condominium transaction quantity from 72 deals in 2H2023 to 98 exchange 1H2024. The increase in deals was mainly sustained by buyers wanting family-sized, ready-to-move-in units primarily for very own stay, Knight Frank’s head of residence and private office Nicholas Keong notes.

The Botany at Dairy Farm condo

The leading prime non-landed home transaction in 1H2024 was the sale of a penthouse at the 190-unit Skywaters Residences at 1 Prince Edward Street in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th floor changed hands at $47.3 million, or $6,100 psf. The unit was acquired by an immigrant of an undefined nationality, based on caveats lodged.

Prime non-landed residences observed a half-yearly boost of 28.2% in revenues value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 top non-landed residential information.

Therefore, dealers in the secondary market may be struggling to change price requirements down to prevailing market levels. Keong anticipates the boost in prime non-landed home rates to remain within -1% and 2% for the whole year.

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