Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
Muted offshore buyer interest is anticipated to proceed evaluating on the deluxe apartment market, Knight Frank’s Keong notes. At the same time, Singaporean home investors are additionally emerging as much more discerning with their search for luxury residences.
This coincides with a surge in deluxe apartment purchase volume from 72 offers in 2H2023 to 98 deals in 1H2024. The increase in deals was greatly sustained by customers looking for family-sized, ready-to-move-in units mostly for very own stay, Knight Frank’s head of residence and exclusive office Nicholas Keong marks.
Some other purchases that made the top five based on cost quantum in the same period were two brand-new sales at the 14-unit 32 Gilstead off Newton Roadway and Dunearn Road. 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 Road, 2 units changed hands in January for $16.5 million each.
Because of this, sellers in the secondary market might be under the gun to change rate requirements to prevailing market levels. Keong expects the boost in prime non-landed home rates to be within -1% and 2% for the entire year.
The top best non-landed home sale 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 level changed hands at $47.3 million, or $6,100 psf. The unit was acquired by an immigrant of an undefined nationality, based upon caveats lodged.
Prime non-landed homes saw a half-yearly rise 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 housing information.
However, the high added purchaser’s stamp duty charges have remained subdue interest from international buyers. This has resulted in the prime housing market place charting 2 consecutive half-yearly periods where complete sales value was less than $1 billion.
The shortage of foreign buyers has also added to plateauing costs, with average prime non-landed home costs seeing only a minimal half-yearly rise of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% less than the standard cost of $2,652 psf in 1H2023.
