Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
The absence of overseas buyers has also contributed to plateauing costs, with standard prime non-landed home prices viewing only a marginal half-yearly boost of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is also 10.9% lower than the standard rate of $2,652 psf in 1H2023.
This coincides with an increase in high-end condominium transaction volume from 72 offers in 2H2023 to 98 deals in 1H2024. The increase in deals was largely sustained by customers wanting family-sized, ready-to-move-in units primarily for very own stay, Knight Frank’s head of non commercial and private office Nicholas Keong notes.
Some other deals that made the top 5 based on price 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 each 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 switched controls in January for $16.5 million each.
As a result, sellers in the secondary market may be struggling to readjust price assumptions down to dominating market levels. Keong anticipates the increase in prime non-landed home prices to be within -1% and 2% for the entire year.
Prime non-landed residences viewed a half-yearly boost of 28.2% in sales value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 prime non-landed non commercial report.
Nonetheless, the high added home buyer’s stamp obligation fees have actually remained to reduce demand from offshore customers. This has actually caused the prime residential market place charting 2 consecutive half-yearly durations where overall sales worth was a lot less than $1 billion.
The top prime non-landed home sale in 1H2024 was the sale of a penthouse at the 190-unit Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th level switched hands at $47.3 million, or $6,100 psf. The unit was bought by a foreigner of an undefined race, based on caveats lodged.
Muted international investor demand is expected to proceed evaluating on the luxury condominium industry, Knight Frank’s Keong notes. At the same time, Singaporean home investors are also turning into extra selective in their look for high-end houses.
