Slower sales, but prices of prime homes still up in 1H2023: Knight Frank

In addition, the URA is also exploring the possibility of creating Woodlands Condo, a mixed-use development that will offer housing, commercial space, and amenities for the community. The project is still in its early stages, but the URA is optimistic that it can make a big difference by bringing more people into the Woodlands Park.

Sales of luxury non-landed homes in Singapore slumped in the first half of 2023, according to Knight Frank’s research report. Transactions totalled 126 in the first six months of the year, a 23% decline from the 163 recorded during the second half of 2022.

This drop has been attributed to the introduction of cooling measures, which included doubling the additional buyer’s stamp duty applicable to foreigners from 30% to 60%, resulting in a “state of pause”.

Despite the lower number of transactions, the average unit price of prime non-landed homes still saw a 4.6% increase to $2,580psf in the first half of 2023, compared to $2,464psf in 2H2022.

Of the 126 luxury non-landed residences sold during this period, 48 were located in District 4, with 31 in Sentosa thanks to demand for such homes from the main island outpacing the limited supply.

Demand for uncompleted homes also remained strong, with super luxury Les Maisons Nassim accounting for the top two non-landed residential transactions in 1H2023. A unit of 8,633sqft was sold for $45mil ($5,213psf) in May, while a 6,286sqft unit was also sold for $36mil ($5,727psf) in February.

Meanwhile, flash estimates from URA showed that prices of landed homes rose 0.1% q-o-q in 2Q023, bringing the total increase in landed home prices to 6% for the first half of the year. 257 landed homes worth $2.7 bil changed hands in 1H2023, and unit land prices rose 9.9% to $1,996 psf.

For the Good Class Bungalow (GCB) segment, total transaction value rose 2.4%, despite a drop in the number of homes transacted. Unit land prices rose from $2,108psf in 2H2022 to $2,952psf in 1H2023.

Looking ahead to the rest of the year, Knight Frank predicts a drop in foreign homebuyer participation in the prime-non landed market due to cooling measures. It adds that some sellers have already chosen to withdraw their properties from the market.

In contrast, the outlook for the landed segment is more positive, with prices expected to continue growing in “a steady fashion” in 2H2023, supported by a larger pool of buyers than sellers.