Non-landed luxury property deals spike in Q2 as Singapore’s borders reopen

by Albert02

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, leading to an increase in overall transaction volumes.

According to a Huttons report released on Thursday (July 21), foreign buyers of luxury homes in the most recent quarter were primarily from China, Indonesia, and the United States. Knight Frank & Company Separately, Singapore’s head of office, Nicholas Keong, stated on July 12 that the reopening of Singapore’s borders has “heralded a return in foreign interest” in Singapore’s prime non-landed residential market, 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, particularly fully-furnished larger-sized units ready for immediate occupation, 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 Q2 for a total transaction value of nearly S$900 million, up 64.2 percent by volume and 46.2 percent by value from the previous year. Les Maisons Nassim, an ultra-luxury condominium, led the quarter’s transactions in terms of both price quantum and per-square-foot (psf), at S$37 million and S$5,461, respectively. The Nassim and CanningHill Piers followed, selling for S$20 million and S$17.6 million, respectively, with psf prices of S$4,915 and S$4,419. A 4-bedroom unit at The Nassim was said to have sold for S$20 million to a Chinese national in May. With only 13 deals in 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.

Huttons attributed the low transaction volume 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.” For these reasons, the agency anticipates 50 to 60 GCB transactions in 2022, compared to 97 transactions the previous year. The top two deals by quantum among GCBs in Q2 were at 14 Olive Road at S$50.2 million and 50 Andrew Road at S$33 million, corresponding to psf prices of S$1,800 and S$1,125, respectively.

The Olive Road property was reportedly bought by the grandson of late millionaire Wee Thiam Siew, while Perennial CEO Pua Seck Guan was said to have bought a GCB on Andrew Road. GCB rentals, on the other hand, set a new high for the year in April, according to URA (Urban Redevelopment Authority) data, with a GCB at Dalvey Estate commanding the highest rent for its type in 2022, S$150,000.

Rising interest rates, according to Huttons, will have little impact on the luxury market in the future because the majority of buyers “either do not take loans or borrow very little.”

Click the image to read the full details of report.
Source:
https://www.businesstimes.com.sg/real-estate/non-landed-luxury-property-deals-spike-in-q2-as-singapores-borders-reopen


 
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