Prime Non Landed Residential Sales Pick 1H2024 Market Remains Uncertain Knight Frank
According to Knight Frank’s 1H2024 report on prime non-landed residential properties, there has been a significant increase in sales value of these homes, rising by 28.2% from $574.7 million in 2H2023 to $736.7 million in 1H2024.
This rise in sales value is mirrored by a 36.5% increase in transaction volume from 72 deals in 2H2023 to 98 deals in 1H2024. Knight Frank’s head of residential and private office, Nicholas Keong, attributes this increase to buyers seeking ready-to-move-in, family-sized units for their own stay.
However, the demand from foreign buyers has been suppressed due to high additional buyer’s stamp duty rates, resulting in two consecutive half-yearly periods where total sales value was less than $1 billion.
This lack of foreign buyers has also contributed to a plateauing of prices in the prime residential market, with only a marginal half-yearly increase of 0.9% to $2,339 per square foot (psf) in 1H2024, from $2,319 psf in 2H2023. This is significantly lower than the average price of $2,652 psf in 1H2023.
The top transaction in the prime non-landed home market for 1H2024 was the sale of a 7,761 sq ft penthouse on the 57th floor of Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar. The unit, bought by a foreigner, was sold for $47.3 million, or $6,100 psf.
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Other top transactions based on price quantum in the same period include two new sales at 32 Gilstead off Newton Road and Dunearn Road, priced at $14.5 million each, and two units at The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Road, sold for $16.5 million each in January.
Knight Frank’s Keong anticipates that the muted demand from foreign buyers will continue to weigh on the luxury condo market, while Singaporean buyers are becoming more selective in their search for luxury homes. This could lead to sellers in the secondary market having to adjust their price expectations according to current market levels.
Keong predicts that the overall increase in prime non-landed home prices for the whole year will be between -1% to 2%.