Prices in the luxury residential segment are likely to continue to rise on the back of a strong economy and a property market upcycle, says George Tan, head of residential projects at Savills Singapore. “This includes new launches and resales in the luxury market,” he adds.
Tan says the preview of City Developments’ New Futura on Leonie Hill Road had injected a dose of optimism into the market at the start of the year. At least 34 units in the 124-unit luxury development are said to have been sold at an average price of $3,200 psf. “Upcoming launches should sustain the optimism,” he adds.
Besides New Futura, units in other luxury condos have also changed hands for more than $3,000 psf. For instance, a 3,466 sq ft, four-bedroom unit at Nassim Park Residences fetched $12 million ($3,462 psf), according to a caveat lodged on Jan 22. The unit last changed hands for $13.2 million ($3,800 psf) in November 2013. The 100-unit freehold Nassim Park Residences was fully sold and completed in 2011.
A 3,466 sq ft, four-bedroom unit at Nassim Park Residences fetched $12 million ($3,462 psf) when it was sold on Jan 22
(Picture: Samuel Issac Chua/The Edge Singapore)
Meanwhile, a 2,831 sq ft, three-bedroom unit on the 19th floor of the The Ritz-Carlton Residences Singapore Cairnhill fetched $9 million ($3,179 psf), according to a caveat lodged on Jan 22. At the start of the month, a 3,057 sq ft, four-bedroom unit on the 31st floor of the 36-storey tower was sold for $11.48 million ($3,755 psf).
According to Savills’ Tan, prices at luxury condos such as Ritz-Carlton Residences are trending in line with new launches. Buyer's optimism is happening not only in the traditional prime Districts 9, 10 and 11, but is also rubbing off in District 1 in the Marina Bay and CBD core.
At the 1,042-unit Marina One Residences, a 1,528 sq ft, three-bedroom unit on the 29th floor of one of the twin 34-storey towers was sold for $4.59 million ($3,004 psf). This is the second time that prices at Marina One crossed the $3,000 psf threshold. Last May, a 2,250 sq ft, four-bedroom unit on the 32nd floor was sold for $7.1 million ($3,157 psf).
Each tower at Marina One Residences contains 521 units. The first tower was launched in October 2014, and more than 80% of the units have been sold. The second tower is slated for launch later this year.
While there has been an increase in both transactions and prices, there has been no indication that the market looks likely to overheat this year, notes Savills’ Tan. He believes investors will continue to be optimistic, especially with more projects in the pipeline for launch later this year.