reporter2
22-07-22, 10:14
Non-landed luxury property deals spike in Q2 as Singapore’s borders reopen
Jul 22, 2022
ENQUIRIES for luxury properties in Singapore have shot up in tandem with increased visitor arrivals over the second quarter of 2022, leading to a spike in overall volumes transacted.
According to a Huttons report released Thursday (Jul 21), foreign buyers of luxury homes in the latest quarter were mainly from China, Indonesia and the US.
Knight Frank Singapore’s head of office Nicholas Keong separately noted in a Jul 12 statement that the reopening of Singapore’s borders have “heralded a return in foreign interest” for the prime non-landed residential market in Singapore - although a lack of saleable stock in family-sized units continued to limit sales.
“Given the amount of anecdotal interest and enquiries from potential foreign homebuyers, luxury non-landed homes, especially fully-furnished larger-sized units ready for immediate occupation, will remain strong with more sales in 2022 as cross-border travel increases to pre-pandemic levels,” said Keong.
Based on the report by Huttons, some 110 non-landed luxury properties changed hands in Q2 with a total transaction value of almost S$900 million, up 64.2 per cent by volume and 46.2 per cent by value when compared to the previous year.
Ultra-luxury condominium Les Maisons Nassim led the quarter’s transactions in terms of both price quantum and a per-square-foot (psf) basis at S$37 million and S$5,461, respectively.
This was followed by The Nassim and CanningHill Piers, which sold at quantums of S$20 million and S$17.6 million, and psf prices of S$4,915 and S$4,419, respectively. A 4-bedroom unit at The Nassim was believed to have been sold to a Chinese national for S$20 million in May.
With just 13 deals taking place in the good class bungalow (GCB) areas over Q2, the volume of GCB deals for H1 2022 fell 52.5 per cent to 28, and total value for the half-year fell 59.3 per cent to S$714.9 million compared to H1 of 2021.
Huttons attributed the low transaction volumes to a lack of listings and a “price mismatch” which it elaborated as a “big gap in price expectations between sellers and buyers”. For these reasons, the agency also projects a lower number of 50 to 60 GCB deals taking place in 2022 compared to 97 deals the previous year.
The top 2 deals by quantum among GCBs for Q2 was achieved at 14 Olive Road at S$50.2 million and 50 Andrew Road at S$33 million, which translates to psf prices of S$1,800 and S$1,125, respectively.
According to Huttons, the Olive Road property was reportedly bought by the grandson of late millionaire Wee Thiam Siew, while Perennial chief executive Pua Seck Guan was said to have purchased a GCB at Andrew Road.
GCB rentals, however, hit 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 with S$150,000 in April.
Going forward, Huttons believes rising interest rates are unlikely to dent interest in the luxury segment, as it said the majority of buyers “either do not take loans or borrow very little”.
https://www.businesstimes.com.sg/real-estate/non-landed-luxury-property-deals-spike-in-q2-as-singapores-borders-reopen
Jul 22, 2022
ENQUIRIES for luxury properties in Singapore have shot up in tandem with increased visitor arrivals over the second quarter of 2022, leading to a spike in overall volumes transacted.
According to a Huttons report released Thursday (Jul 21), foreign buyers of luxury homes in the latest quarter were mainly from China, Indonesia and the US.
Knight Frank Singapore’s head of office Nicholas Keong separately noted in a Jul 12 statement that the reopening of Singapore’s borders have “heralded a return in foreign interest” for the prime non-landed residential market in Singapore - although a lack of saleable stock in family-sized units continued to limit sales.
“Given the amount of anecdotal interest and enquiries from potential foreign homebuyers, luxury non-landed homes, especially fully-furnished larger-sized units ready for immediate occupation, will remain strong with more sales in 2022 as cross-border travel increases to pre-pandemic levels,” said Keong.
Based on the report by Huttons, some 110 non-landed luxury properties changed hands in Q2 with a total transaction value of almost S$900 million, up 64.2 per cent by volume and 46.2 per cent by value when compared to the previous year.
Ultra-luxury condominium Les Maisons Nassim led the quarter’s transactions in terms of both price quantum and a per-square-foot (psf) basis at S$37 million and S$5,461, respectively.
This was followed by The Nassim and CanningHill Piers, which sold at quantums of S$20 million and S$17.6 million, and psf prices of S$4,915 and S$4,419, respectively. A 4-bedroom unit at The Nassim was believed to have been sold to a Chinese national for S$20 million in May.
With just 13 deals taking place in the good class bungalow (GCB) areas over Q2, the volume of GCB deals for H1 2022 fell 52.5 per cent to 28, and total value for the half-year fell 59.3 per cent to S$714.9 million compared to H1 of 2021.
Huttons attributed the low transaction volumes to a lack of listings and a “price mismatch” which it elaborated as a “big gap in price expectations between sellers and buyers”. For these reasons, the agency also projects a lower number of 50 to 60 GCB deals taking place in 2022 compared to 97 deals the previous year.
The top 2 deals by quantum among GCBs for Q2 was achieved at 14 Olive Road at S$50.2 million and 50 Andrew Road at S$33 million, which translates to psf prices of S$1,800 and S$1,125, respectively.
According to Huttons, the Olive Road property was reportedly bought by the grandson of late millionaire Wee Thiam Siew, while Perennial chief executive Pua Seck Guan was said to have purchased a GCB at Andrew Road.
GCB rentals, however, hit 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 with S$150,000 in April.
Going forward, Huttons believes rising interest rates are unlikely to dent interest in the luxury segment, as it said the majority of buyers “either do not take loans or borrow very little”.
https://www.businesstimes.com.sg/real-estate/non-landed-luxury-property-deals-spike-in-q2-as-singapores-borders-reopen