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

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 information.

This accompanies a rise in deluxe apartment purchase quantity from 72 offers in 2H2023 to 98 exchange 1H2024. The rise in purchases was mainly incited by customers looking for family-sized, ready-to-move-in units primarily for own stay, Knight Frank’s head of residential and nonpublic office Nicholas Keong marks.

Some other purchases that made the top five based on cost 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 offered in April and valued at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Road, two units changed controls in January for $16.5 million each.

The leading 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 ground changed hands at $47.3 million, or $6,100 psf. The unit was acquired by a foreigner of an undefined citizenship, based on caveats lodged.

Hillock Green Singapore

Nonetheless, the high additional buyer’s stamp duty fees have actually remained subdue demand from international buyers. This has actually led to the prime housing market charting two succeeding semiannual durations where overall sales price was a lot less than $1 billion.

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

Muted offshore investor demand is anticipated to continue weighing on the luxury condo industry, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are additionally becoming more selective with their hunt for luxury properties.

Therefore, sellers in the secondary market might be under the gun to readjust cost requirements down to prevailing market levels. Keong anticipates the boost in prime non-landed home costs to remain within -1% and 2% for the whole year.

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