Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank

Based upon URA information, rates for landed homes remained to boost in the second quarter by 2.9%, bringing the cost growth to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, regardless of cooling down measures enacted in December in 2015.

Keong expects deal task to moderate as a result of a weaker global outlook, with landed home prices enhancing by 10% in 2022.

Keong expects need for high-end non-landed homes, especially fully-furnished larger-sized units prepared for prompt occupancy, to continue to be strong in 2022, as international traveling returns to pre-pandemic levels.

Incongruity between the expectations of purchasers and sellers, in addition to spikes in costs for landed homes, brought about slower sales in 1H2022, clarifies Keong. Ordinary unit prices climbed by 14.5% over the past two years as the pandemic increased demand for larger home.

” Nevertheless, a lack of saleable stock in family-sized systems remained to limit sales,” says Nicholas Keong, head of exclusive office at Knight Frank. “Foreign buyers’ passion included the sale of 22 luxury houses in Draycott 8 to an Indonesian family members for a complete approximated value of $168 million.”

“Purchase value for landed residences reached an overall of $2.9 billion in 1H2022, a 46.9% decrease from $5.4 billion recorded in 2H2021,” specifies the Knight Frank report.

Lacklustre sales in the Good Class Bungalow (GCB) segment proceeded from in 2015, declining by 55.3% in 1H2022 from 2H2021, triggered by weak financial conditions and price resistance from vendors who were unwilling to reduce rate expectations. However, prime sites with attractive story sizes were still being negotiated. Recently, a GCB with a land size of 34,216 sq ft on 42 Chancery Lane was purchased by the daughter-in-law of Filipino tycoon Andrew Tan for $66.1 million, according to Keong.

Midtown Bay condo floor plan

The first quarter documented a sharp decline of 50.6% q-o-q in prime non-landed household sales, because of extra customer’s stamp obligation walks for foreign buyers enforced in December last year. In the second quarter, prime non-landed household sales recouped by 29.4% q-o-q as company beliefs improved as well as capitalists aimed to Singapore as a safe haven in the midst of global uncertainty.

Luxury non-landed property sales got to $1.1 billion in the first fifty percent of this year, sliding by 43.7% from the 2nd fifty percent of last year, according to a Knight Frank record released today (July 12).

Leading quantum sales continued to originate from new jobs like Les Maisons, which clocked the top 3 greatest purchases in worth for 1H2022. System costs ranged from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th highest transaction in worth for 1H2022 was a resale device at The Nassim which was sold for $20 million, showing “need for luxury-sized systems in pristine prepared to move-in condition”, states Keong.

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