Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank

The shortage of offshore buyers has also contributed to plateauing prices, with average prime non-landed home prices observing just a limited half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% less than the common price of $2,652 psf in 1H2023.

This accompanies a rise in luxury condominium deal quantity from 72 offers in 2H2023 to 98 deals in 1H2024. The rise in purchases was mostly incited by buyers wanting family-sized, ready-to-move-in units mainly for own stay, Knight Frank’s head of residential and private office space Nicholas Keong notes.

Muted foreign investor need is expected to proceed evaluating on the deluxe apartment industry, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are also turning into more discerning with their browse for luxury homes.

The leading prime 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 ground changed hands at $47.3 million, or $6,100 psf. The unit was gotten by an immigrant of an undetermined citizenship, based upon caveats lodged.

Best non-landed houses viewed a half-yearly increase of 28.2% in revenues worth, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 top non-landed non commercial report.

Other transactions that brought in the top 5 based on price quantum in the same time frame were 2 new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Street. The units were each sold in April and cost at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Streets, 2 units changed controls in January for $16.5 million each.

Because of this, sellers in the secondary market place might be under pressure to readjust cost expectations down to dominating market levels. Keong expects the increase in prime non-landed home rates to remain in between -1% and 2% for the entire year.

Nonetheless, the high extra buyer’s stamp obligation charges have continued to reduce interest from international purchasers. This has actually led to the prime residential industry charting two succeeding semiannual periods where complete sales worth was much less than $1 billion.

TMW Maxwell Singapore

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