Non-landed luxury property deals spike in Q2 as Singapore’s borders reopen
Non-landed luxury property deals spike in Q2 as Singapore’s borders reopen. Enquiries for luxury properties in Singapore have increased in tandem with increased visitor arrivals in the second quarter of 2022, resulting in a surge in overall transaction volumes.
According to a Huttons report released on Thursday (July 21), the latest quarter’s foreign buyers of luxury homes were primarily from China, Indonesia, and the United States. Knight Frank & Co. Separately, Singapore’s head of office, Nicholas Keong, stated in a July 12 statement that the reopening of Singapore’s borders has “heralded a return in foreign interest” for the prime non-landed residential market in Singapore, despite a lack of saleable stock in family-sized units. “Given the level of anecdotal interest and enquiries from potential foreign homebuyers, luxury non-landed homes will remain strong with more sales in 2022 as cross-border travel returns to pre-pandemic levels,” Keong predicted.
According to Huttons, 110 non-landed luxury properties changed hands in the second quarter for a total transaction value of nearly S$900 million, representing a 64.2 percent increase in volume and a 46.2 percent increase in value over the previous year. The ultra-luxury condominium Les Maisons Nassim led the quarter’s transactions in terms of price quantum and per-square-foot (psf), at S$37 million and S$5,461, respectively. This was followed by The Nassim and CanningHill Piers, which sold for S$20 million and S$17.6 million, respectively, with psf prices of S$4,915 and S$4,419. In May, a 4-bedroom unit at The Nassim was rumored to have sold for S$20 million to a Chinese national. With only 13 deals in the good class bungalow (GCB) areas during Q2, the volume of GCB deals for H1 2022 fell 52.5 percent to 28, and the total value for the half-year fell 59.3 percent to S$714.9 million, compared to H1 2021.
The low transaction volume was attributed by Huttons to a lack of listings as well as a “price mismatch,” which it defined as a “significant difference in price expectations between sellers and buyers.” As a result of these factors, the agency anticipates 50 to 60 GCB transactions in 2022, up from 97 transactions the previous year. In Q2, the top two GCB deals by quantum were at 14 Olive Road for S$50.2 million and 50 Andrew Road for S$33 million, corresponding to psf prices of S$1,800 and S$1,125, respectively.
The Olive Road property was reportedly purchased by the grandson of late millionaire Wee Thiam Siew, while Perennial chief executive Pua Seck Guan was said to have purchased a GCB on Andrew Road. GCB rentals, on the other hand, reached a new high for the year, with URA (Urban Redevelopment Authority) data showing that a GCB at Dalvey Estate achieved the highest rent for its kind in 2022 in April, with S$150,000.
In the future, Huttons believes rising interest rates will have little impact on the luxury market because the majority of buyers “either do not take loans or borrow very little.”
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