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

Luxury non-landed home sales in Singapore recorded $1.1 billion in the first half of 2023, according to a research report by Knight Frank. Despite the lower sales volume, the average unit price saw a 4.6% increase to $2,580 psf compared to 2H2022. Demand for uncompleted homes also remained evident with super luxury condos like Les Maisons Nassim accounting for the top two transactions.

The Champions Way Condo is located in a prime spot close to a number of entertainment options, schools and shopping options. It has a range of facilities such as swimming pools, tennis courts, BBQ pits and a jogging track. The condominium is also close to an MRT station, making it easy for residents to get around the city. In addition, the area enjoys good security with 24-hour security and access to CCTV cameras.

The introduction of new cooling measures on April 27, including the doubling of additional buyer’s stamp duty applicable to foreigners, had an impact on the market. This resulted in a lower number of transactions, with only 126 luxury non-landed homes sold during the first half of 2023, compared to 163 in 2H2022.

Despite the setback, the average unit price still increased significantly, indicating that wealthy locals, permanent residents and naturalised citizens remained keen on purchasing these properties.

Landed residential homes also saw a growth in terms of prices and transactions. Unit land prices rose 9.9% to $1,996 psf in 1H2023, while 257 landed homes worth $2.7 billion changed hands – a slight increase from the 284 properties sold in 2H2022. In the Good Class Bungalow (GCB) segment, the total transaction value rose 2.4% to $424.3 million in 1H2023, although the number of homes transacted fell from 10 GCBs in 2H2022 to eight in the same period.

This is further evidenced by the sale of the last two units at Les Maisons Nassim, after a 6,092 sq ft unit fetched $30.77 million ($5,050 psf) and a 6,179 sq ft unit was sold for $32.75 million ($5,300 psf), according to EdgeProp Singapore.

Knight Frank predicts a drop in foreign homebuyer participation post-cooling measures for the remainder of 2023, as some sellers are withdrawing their properties from the market. For the landed segment, prices are expected to continue to grow in a steady fashion in 2H2023, underpinned by more buyers than sellers in the market.

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