Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank

Based upon URA information, prices for landed houses continued to enhance in the 2nd quarter by 2.9%, bringing the cost development to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, in spite of cooling measures enacted in December in 2014.

Difference in between the expectations of customers and sellers, as well as spikes in costs for landed homes, brought about slower sales in 1H2022, explains Keong. Average unit costs climbed by 14.5% over the past two years as the pandemic enhanced need for bigger space.

Keong anticipates need for high-end non-landed homes, particularly fully-furnished larger-sized devices ready for immediate tenancy, to stay solid in 2022, as global traveling go back to pre-pandemic levels.

Lacklustre sales in the Excellent Class Cottage (GCB) segment continued from last year, declining by 55.3% in 1H2022 from 2H2021, brought on by weak economic problems and also cost resistance from vendors that hesitated to lower cost expectations. However, prime websites with appealing plot sizes were still being negotiated. Lately, a GCB with a land dimension of 34,216 sq ft on 42 Chancery Lane was acquired by the daughter-in-law of Filipino magnate Andrew Tan for $66.1 million, according to Keong.

The Arden condominium

” Nonetheless, an absence of saleable supply in family-sized units continued to restrict sales,” states Nicholas Keong, head of private workplace at Knight Frank. “Foreign buyers’ passion consisted of the sale of 22 luxury apartments in Draycott 8 to an Indonesian family members for a total estimated value of $168 million.”

Keong expects deal task to regulate due to a weak international outlook, with landed residence prices boosting by 10% in 2022.

“Deal value for landed homes reached an overall of $2.9 billion in 1H2022, a 46.9% decline from $5.4 billion tape-recorded in 2H2021,” states the Knight Frank report.

The initial quarter recorded a sharp decline of 50.6% q-o-q in prime non-landed property sales, as a result of extra customer’s stamp task walks for foreign buyers enforced in December in 2015. In the second quarter, prime non-landed residential sales recuperated by 29.4% q-o-q as organization views improved as well as financiers looked to Singapore as a safe house in the midst of worldwide unpredictability.

Leading quantum sales remained to come from new tasks like Les Maisons, which clocked the top 3 greatest deals in value for 1H2022. Unit prices varied from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th greatest transaction in value for 1H2022 was a resale device at The Nassim which was sold for $20 million, showing “demand for luxury-sized systems in beautiful ready to move-in problem”, claims Keong.

High-end non-landed property sales reached $1.1 billion in the initial half of this year, sliding by 43.7% from the 2nd fifty percent of last year, according to a Knight Frank report launched today (July 12).

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