Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
Top non-landed residences saw a half-yearly rise of 28.2% in revenues market value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 top non-landed non commercial report.
Different purchases that brought in the leading five based on rate quantum in the same time frame were two new sales at the 14-unit 32 Gilstead off Newton Roadway 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 changed hands in January for $16.5 million each.
Muted foreign buyer need is expected to carry on evaluating on the luxury condo industry, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are in addition becoming extra careful with their hunt for high-end homes.
This accompanies an increase in high-end condominium transaction quantity from 72 deals in 2H2023 to 98 exchange 1H2024. The rise in deals was greatly sustained by buyers seeking family-sized, ready-to-move-in units mostly for own stay, Knight Frank’s head of non commercial and private office Nicholas Keong notes.
The absence of offshore buyers has also contributed to plateauing rates, with typical prime non-landed home prices seeing only a low half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is similarly 10.9% lower than the common price of $2,652 psf in 1H2023.
The leading best non-landed home transaction 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 floor shifted hands at $47.3 million, or $6,100 psf. The unit was bought by a foreigner of an unspecified race, based on caveats lodged.
As a result, dealers in the secondary market place might be struggling to readjust price expectations down to prevailing market levels. Keong anticipates the rise in prime non-landed home costs to remain between -1% and 2% for the entire year.
However, the high extra purchaser’s stamp obligation charges have actually remained to subdue demand from overseas purchasers. This has actually caused the prime residential industry charting 2 continuous half-yearly periods where total sales price was much less than $1 billion.
