Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
Different transactions that brought in the top five based on cost quantum in the same period were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Street. The units were both sold 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 controls in January for $16.5 million each.
The top 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 level changed hands at $47.3 million, or $6,100 psf. The unit was purchased by a foreigner of an undetermined nationality, based upon caveats lodged.
Because of this, dealers in the secondary market place might be struggling to readjust cost assumptions down to dominating market levels. Keong anticipates the boost in prime non-landed home costs to remain in between -1% and 2% for the entire year.
Muted overseas investor demand is expected to proceed weighing on the deluxe apartment market, Knight Frank’s Keong notes. At the same time, Singaporean home clients are additionally becoming more discerning with their browse for luxury homes.
Best non-landed homes viewed a half-yearly rise of 28.2% in sales market value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 top non-landed housing report.
Nonetheless, the high additional purchaser’s stamp obligation rates have actually continued to reduce interest from overseas buyers. This has actually caused the prime residence market charting 2 continuous half-yearly periods where total sales price was a lot less than $1 billion.
This accompanies an increase in deluxe apartment purchase quantity from 72 deals in 2H2023 to 98 deals in 1H2024. The rise in purchases was mostly sustained by buyers looking for family-sized, ready-to-move-in units mainly for very own stay, Knight Frank’s head of residence and nonpublic office Nicholas Keong notes.
The shortage of overseas buyers has actually also contributed to plateauing costs, with typical prime non-landed home rates seeing only a marginal half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is even 10.9% lower than the common price of $2,652 psf in 1H2023.
