In 2Q2021, private homes sales in the Core Central Region (CCR) rose by about 25% q-o-q to 1,930 units transacted. This is the strongest resale volume in this segment since 4Q2010 when 2,014 units were transacted. (Picture: Samuel Isaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - A report on Singapore’s luxury residential market by OrangeTee&Tie indicates that prices of new luxury condominiums increased 5.2% y-o-y to $2,652 psf in 3Q2021 compared to $2,521 psf in 3Q2020. Resale luxury condo prices also rose by 7.1% y-o-y to $1,899 psf in 3Q2021 compared to $1,773 psf a year ago.
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According to Christine Sun, senior vice-president of research & analytics at OrangeTee&Tie, Singapore’s real estate industry has benefitted from the acceleration of inward foreign funds over the course of the Covid-19 pandemic.
“In the first half of this year, real estate investment sales reached more than $9 billion boosted by the residential and industrial sectors,” she says.
New buyers have also entered the luxury residential market, such as budding entrepreneurs and individuals working in emerging industries like biomedical, fintech, and multinational technology companies, says Sun.
In 2Q2021, private homes sales in the Core Central Region (CCR) rose by about 25% q-o-q to 1,930 units transacted. This is the strongest resale volume in this segment since 4Q2010 when 2,014 units were transacted.
Last quarter also saw new home sales in the CCR hit an 11-year quarterly high with 813 transactions, while resale volume reached a 12-year quarterly high with 1,109 transactions. Over the first nine months of this year, 339 condo units were sold for more than $5 million each, and of this number, 74 units fetched more than $10 million each.
According to the OrangeTee report, the proportion of large-sized luxury condo units has also increased. In 3Q2021, 42.3% of condo purchases in the CCR were at least 1,200 sq ft, up from 37.4% in the previous quarter and 31.8% more than in 1Q2021. Demand for luxury condo units of more than 1,600 sq ft rose to 23.6% in 3Q2021, up from 22.1% in the previous quarter and 18% more than in 1Q2021. (Discover insightful data of any Singapore condominium with our condo directory)
The priciest luxury unit sold so far this year, in terms of absolute price, was a 6,574 sq ft apartment at Les Maisons Nassim that was sold for $39 million in May. On a psf basis, the most expensive unit sold so far this year was a 3,034 sq ft unit at Eden which sold for $6,024 psf in March this year.
Based on URA caveats, the best-selling new luxury condos so far this year are Midtown Modern, Irwell Hill Residences, Leedon Green, Fourth Avenue Residence, and Hyll on Holland.
The landed housing segment has also recorded a strong performance this year amid a surge in demand. There were 2,407 properties transacted over the first eight months of this year, and this is a 139.7% increase from the same period a year ago.
Some of the biggest deals so far include a 32,150 sq ft Good Class Bungalow (GCB) at Nassim Road that changed hands for $128.8 million in March, while another 31,795 sq ft GCB at Queen Astrid Park was sold for $86 million in July.
Looking ahead, “the supply of luxury homes is scarce in Singapore, especially developments that are of scale and in good locations” says Sun. She adds that supply of new luxury homes will likely remain low as most developers have yet to replenish their land banks.
If the economy continues to rebound over the coming months, this could boost consumers’ confidence and spur more sales of luxury homes. Thus, prices could trend higher in the coming months, says Sun.
Check out the latest listings near Midtown Modern, Irwell Hill Residences, Leedon Green, Fourth Avenue Residence, and Hyll on Holland