Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
The top best non-landed home proceeding 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 shifted hands at $47.3 million, or $6,100 psf. The unit was acquired by a foreigner of an undetermined nationality, based upon caveats lodged.
Muted foreign investor need is anticipated to carry on weighing on the luxury condo market, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are also becoming extra careful with their look for deluxe properties.
Some other transactions that brought in the leading 5 based on rate quantum in the same period were two brand-new sales at the 14-unit 32 Gilstead off Newton Roadway and Dunearn Road. The units were each marketed in April and valued at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Streets, two units shifted hands in January for $16.5 million each.
Nevertheless, the high added buyer’s stamp responsibility rates have remained subdue interest from international purchasers. This has resulted in the prime housing market charting 2 continuous half-yearly durations where complete sales cost was less than $1 billion.
Because of this, sellers in the secondary market place may be struggling to readjust cost expectations down to dominating market levels. Keong anticipates the increase in prime non-landed home costs to be in between -1% and 2% for the entire year.
Best non-landed homes observed 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 housing information.
The lack of offshore buyers has actually also contributed to plateauing rates, with regular prime non-landed home prices viewing just a low half-yearly rise of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is also 10.9% lower than the average price of $2,652 psf in 1H2023.
This accompanies a rise in luxury apartment purchase volume from 72 deals in 2H2023 to 98 deals in 1H2024. The increase in purchases was largely sustained by purchasers wanting family-sized, ready-to-move-in units primarily for own stay, Knight Frank’s head of residence and exclusive office space Nicholas Keong marks.
