Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
The lack of offshore buyers has actually also contributed to plateauing rates, with typical prime non-landed home costs viewing only a limited half-yearly boost of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% less than the typical rate of $2,652 psf in 1H2023.
Muted overseas investor interest is expected to carry on weighing on the high-end apartment market, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are also turning into more selective with their look for deluxe properties.
The top prime non-landed home sale in 1H2024 was the sale of a penthouse at the 190-unit Skywaters Properties at 1 Prince Edward Road 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 gotten by a foreigner of an unspecified nationality, based on caveats lodged.
Nevertheless, the high extra purchaser’s stamp obligation fees have continued to reduce demand from international shoppers. This has caused the prime housing market place charting 2 succeeding half-yearly durations where overall sales cost was a lot less than $1 billion.
As a result, sellers in the secondary market might be under pressure to adjust cost expectations to dominating market levels. Keong expects the rise in prime non-landed home rates to remain in between -1% and 2% for the entire year.
This coincides with a surge in deluxe condominium deal quantity from 72 offers in 2H2023 to 98 exchange 1H2024. The increase in deals was largely incited by purchasers seeking family-sized, ready-to-move-in units mostly for own stay, Knight Frank’s head of residence and nonpublic office space Nicholas Keong notes.
Lentoria Hong Leong Group & Mitsui Fudosan
Some other deals that brought in the top 5 based on cost quantum in the same time frame were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Roadway and Dunearn Street. The units were both offered in April and cost at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Streets, 2 units shifted hands in January for $16.5 million each.
Prime non-landed homes observed a half-yearly increase of 28.2% in profits market value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 prime non-landed residential report.
