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

This coincides with a surge in high-end condominium transaction quantity from 72 offers in 2H2023 to 98 deals in 1H2024. The increase in purchases was mainly fuelled by buyers seeking family-sized, ready-to-move-in units primarily for own stay, Knight Frank’s head of non commercial and nonpublic office space Nicholas Keong marks.

Midtown Modern condo

Nevertheless, the high extra purchaser’s stamp responsibility rates have remained to subdue interest from offshore buyers. This has actually resulted in the prime residential market place charting two consecutive semiannual durations where complete sales cost was much less than $1 billion.

Some other transactions that brought in the leading five based on price quantum in the same period were 2 brand-new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Road. The units were each sold in April and priced 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 top best non-landed home sale in 1H2024 was the sale of a penthouse at the 190-unit Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th level shifted hands at $47.3 million, or $6,100 psf. The unit was purchased by a foreigner of an undetermined citizenship, based on caveats lodged.

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

Therefore, sellers in the secondary market may be under the gun to readjust cost assumptions down to dominating market levels. Keong anticipates the increase in prime non-landed home prices to be within -1% and 2% for the whole year.

The lack of foreign buyers has also added to plateauing rates, with standard prime non-landed home rates seeing just a low 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 cost of $2,652 psf in 1H2023.

Muted foreign client interest is expected to proceed evaluating on the luxury apartment industry, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are additionally emerging as more selective in their look for high-end houses.

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