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

Best non-landed residences viewed a half-yearly increase of 28.2% in profits worth, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 prime non-landed housing information.

This coincides with a surge in deluxe apartment deal quantity from 72 deals in 2H2023 to 98 exchange 1H2024. The increase in purchases was largely sustained by buyers wanting family-sized, ready-to-move-in units mostly for own stay, Knight Frank’s head of non commercial and nonpublic office space Nicholas Keong marks.

Muted overseas investor demand is expected to continue evaluating on the luxury apartment industry, Knight Frank’s Keong notes. At the same time, Singaporean home clients are additionally turning into more careful in their browse for luxury properties.

The top best non-landed home transaction 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 floor changed hands at $47.3 million, or $6,100 psf. The unit was bought by a foreigner of an undefined race, based on caveats lodged.

Different purchases 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 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 switched hands in January for $16.5 million each.

The shortage of foreign buyers has actually also contributed to plateauing rates, with average prime non-landed home costs seeing only a marginal half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is also 10.9% less than the standard cost of $2,652 psf in 1H2023.

Because of this, home sellers in the secondary market may be under pressure to change rate assumptions to prevailing market levels. Keong anticipates the rise in prime non-landed home prices to remain in between -1% and 2% for the entire year.

Kassia Condo floor plan

However, the high added home buyer’s stamp obligation rates have remained to suppress demand from overseas customers. This has resulted in the prime residential industry charting 2 continuous semiannual durations where overall sales cost was a lot less than $1 billion.

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