Prime non-landed residential sales pick up in 1H2024, but market remains uncertain: Knight Frank
The absence of foreign buyers has also added to plateauing costs, with regular prime non-landed home rates observing just a marginal half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is even 10.9% lower than the standard rate of $2,652 psf in 1H2023.
This coincides with a surge in luxury apartment transaction volume from 72 offers in 2H2023 to 98 exchange 1H2024. The rise in deals was mainly sustained 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 notes.
Nonetheless, the high additional purchaser’s stamp duty charges have actually remained subdue demand from offshore customers. This has led to the prime residential industry charting 2 succeeding half-yearly periods where overall sales value was a lot less than $1 billion.
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 Street in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th floor switched hands at $47.3 million, or $6,100 psf. The unit was purchased by a foreigner of an undetermined nationality, based on caveats lodged.
Some other deals that made the leading five based on rate quantum in the same period were 2 new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Road. 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 Road, 2 units switched controls in January for $16.5 million each.
Muted offshore buyer need is expected to carry on evaluating on the luxury condominium market, Knight Frank’s Keong notes. At the same time, Singaporean home investors are in addition becoming much more careful with their browse for deluxe properties.
Because of this, sellers in the secondary market may be struggling to adjust rate requirements down to prevailing market levels. Keong expects the rise in prime non-landed home costs to be in between -1% and 2% for the entire year.
Top non-landed houses saw a half-yearly increase 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 prime non-landed residential record.
