The prime non-landed market saw a 28.2% half-yearly increase in sales value to $736.7 million in 1H2024, according to Knight Frank The prime non-landed market saw a 28.2% half-yearly increase in sales value to $736.7 million in 1H2024, according to Knight Frank (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - Prime non-landed homes saw a half-yearly increase of 28.2% in sales value, from $574.7 million in 2H2023 to $736.7 million in 1H2024, according to Knight Frank’s 1H2024 prime non-landed residential report.
This coincides with a rise in luxury condo transaction volume from 72 deals in 2H2023 to 98 deals in 1H2024. The rise in transactions was largely fuelled by buyers seeking family-sized, ready-to-move-in units primarily for own stay, Knight Frank’s head of residential and private office Nicholas Keong notes.
However, the high additional buyer’s stamp duty rates have continued to suppress demand from foreign buyers. This has resulted in the prime residential market charting two consecutive half-yearly periods where total sales value was less than $1 billion.
Read also: Developer sentiment in prime residential market turned negative in 2Q2023
The lack of foreign buyers has also contributed to plateauing prices, with average prime non-landed home prices seeing only a marginal half-yearly increase of 0.9% to $2,339 psf in 1H2024, from $2,319 psf in 2H2023. This is also 10.9% lower than the average price of $2,652 psf in 1H2023.
The top prime non-landed home transaction 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 floor changed hands at $47.3 million, or $6,100 psf. The unit was bought by a foreigner of an unspecified nationality, based on caveats lodged.
Other transactions that made the top five based on price quantum in the same period were two new sales at the 14-unit 32 Gilstead off Newton Road and Dunearn Road. The units were both sold in April and priced at $14.5 million each. At the 58-unit The Ritz-Carlton Residences Singapore Cairnhill on Cairnhill Road, two units changed hands in January for $16.5 million each.
Muted foreign buyer demand is expected to continue weighing on the luxury condo market, Knight Frank’s Keong notes. At the same time, Singaporean home buyers are also becoming more selective in their search for luxury homes.
As a result, sellers in the secondary market may be under pressure to adjust price expectations down to prevailing market levels. Keong expects the increase in prime non-landed home prices to be between -1% and 2% for the whole year.