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

The lack of foreign buyers has actually also contributed to plateauing rates, with typical prime non-landed home prices observing only a low 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 cost of $2,652 psf in 1H2023.

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Other deals that brought in the top 5 based on rate quantum in the same time frame were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Street. The units were both 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 hands in January for $16.5 million each.

Muted international client interest is anticipated to continue evaluating on the luxury apartment industry, Knight Frank’s Keong notes. At the same time, Singaporean home investors are in addition becoming much more careful in their browse for luxury residences.

This coincides with a rise in luxury apartment deal volume from 72 offers in 2H2023 to 98 exchange 1H2024. The surge in purchases was mainly fuelled by purchasers seeking family-sized, ready-to-move-in units mainly for own stay, Knight Frank’s head of non commercial and exclusive office Nicholas Keong marks.

Nevertheless, the high added home buyer’s stamp duty charges have remained to suppress interest from overseas purchasers. This has led to the prime residence industry charting two succeeding semiannual periods where total sales cost was a lot less than $1 billion.

The leading prime non-landed home proceeding 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 level changed hands at $47.3 million, or $6,100 psf. The unit was acquired by a foreigner of an undefined race, based on caveats lodged.

Because of this, dealers in the secondary market place may be under pressure to readjust rate expectations down to dominating market levels. Keong anticipates the rise in prime non-landed home costs to remain within -1% and 2% for the whole year.

Best non-landed residences saw a half-yearly increase 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.

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