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

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

The Arden floor plan

The shortage of offshore buyers has actually also contributed to plateauing prices, with typical prime non-landed home prices observing just a marginal half-yearly boost of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is even 10.9% lower than the average rate of $2,652 psf in 1H2023.

Muted overseas investor demand is anticipated to continue evaluating on the high-end condo industry, Knight Frank’s Keong notes. At the same time, Singaporean home clients are also becoming extra selective with their search for deluxe homes.

Some other transactions that made the leading 5 based on price quantum in the same time frame were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Roadway and Dunearn Road. The units were each sold 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 controls in January for $16.5 million each.

The leading best non-landed home sale 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 level switched hands at $47.3 million, or $6,100 psf. The unit was purchased by a foreigner of an unspecified nationality, based upon caveats lodged.

Nonetheless, the high extra purchaser’s stamp obligation rates have remained to subdue demand from international customers. This has led to the prime housing market charting 2 succeeding semiannual periods where complete sales price was a lot less than $1 billion.

As a result, sellers in the secondary market might be under pressure to adjust price requirements down to prevailing market levels. Keong expects the increase in prime non-landed home prices to be in between -1% and 2% for the whole year.

This accompanies a rise in high-end apartment deal volume from 72 deals in 2H2023 to 98 deals in 1H2024. The increase in transactions was greatly fuelled by customers wanting family-sized, ready-to-move-in units primarily for very own stay, Knight Frank’s head of residence and nonpublic office space Nicholas Keong notes.

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