Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
This accompanies an increase in luxury apartment transaction volume from 72 offers in 2H2023 to 98 exchange 1H2024. The increase in transactions was mainly fuelled by purchasers looking for family-sized, ready-to-move-in units primarily for own stay, Knight Frank’s head of residential and exclusive office space Nicholas Keong marks.
As a result, home sellers in the secondary market place may be under the gun to readjust cost requirements down to dominating market levels. Keong anticipates the rise in prime non-landed home rates to be in between -1% and 2% for the whole year.
However, the high additional home buyer’s stamp obligation charges have remained to suppress interest from offshore purchasers. This has actually caused the prime residence market place charting 2 continuous semiannual periods where overall sales value was much less than $1 billion.
Other deals that made the leading five based on cost quantum in the same duration were two new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Street. The units were each sold 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 controls in January for $16.5 million each.
The absence of overseas buyers has also contributed to plateauing costs, with standard prime non-landed home costs viewing only a marginal half-yearly boost of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% lower than the typical rate of $2,652 psf in 1H2023.
Best non-landed homes viewed a half-yearly rise 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 housing record.
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 Street in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th floor shifted hands at $47.3 million, or $6,100 psf. The unit was bought by a foreigner of an undefined nationality, based on caveats lodged.
Muted overseas buyer need is expected to proceed weighing on the luxury condominium market, Knight Frank’s Keong notes. At the same time, Singaporean home investors are additionally becoming more careful with their search for high-end residences.