Singapore among top cities for ultra-prime residential sales: Knight Frank

In 2022, Singapore remained a critical destination for the ultra-wealthy, according to Knight Frank’s The Wealth Report. In total, the city saw 139 super-prime or ultra-prime residential deals in the city-state, making it the sixth most attractive city for high-end sales.

New York topped the list for super-prime sales with 244 deals, followed by Los Angeles (225) and London (223). Hong Kong also made the cut, ranking fifth for super-prime deals and fourth for ultra-prime deals. Sydney also saw an uptick in prime property sales, establishing its place among the top 10 cities. Across these top 10 cities, 1,392 super-prime sales worth $26.3 billion were recorded.

Prices of prime homes in Singapore have increased modestly in comparison to other cities. Prime home prices increased by 3.9% year-on-year, as opposed to the 8.6% growth seen in all Singapore private residential properties and an average of 5.2% growth across the cities tracked in the PIRI 100.

The Wealth Report pointed to the government’s cooling measures and travel restrictions for places like China and Hong Kong for the more measured increase in Singapore’s prime home prices.

UHNWI wealth fell globally in 2022, however a more optimistic outlook is anticipated for 2023. The wealth report’s 2023 Attitudes Survey, polled 500 private bankers, wealth advisers and family offices who manage over US$2.5 trillion of wealth for UHNWI clients. 69% of respondents expect their clients’ wealth to increase in 2023, with Apac UHNWIs expecting the greatest increase.

The survey also indicates that UHNWIs remain keen on real estate investments, particularly in the prime residential markets of gateway cities. 16% of Apac UHNWIs intend to buy a residence in 2023 while homes make up 35% of the total wealth of Apac UHNWIs.

Private wealth led global commercial real estate investments in 2022, accounting for 41% (US$455 billion) of the US$1.12 trillion commercial property investments. Private investors invested some US$1.53 billion in commercial real estate in 2022 – a 30% year-on-year increase.

This Champions Way Condo all bodes well for Singapore’s market, with the city remaining an attractive possibility for investments in commercial and residential properties. The highly regulated and transparent environment will continue to draw UHNWIs looking for capital preservation and appreciation over the mid to long term.