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

Keong expects demand for high-end non-landed residences, specifically fully-furnished larger-sized systems prepared for instant tenancy, to remain strong in 2022, as international travel go back to pre-pandemic degrees.

Incongruity in between the expectations of purchasers and sellers, in addition to spikes in costs for landed residences, brought about slower sales in 1H2022, describes Keong. Average system rates rose by 14.5% over the past 2 years as the pandemic increased need for larger space.

Based on URA information, prices for landed houses continued to enhance in the second quarter by 2.9%, bringing the cost development to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, despite cooling procedures passed in December last year.

Keong anticipates purchase task to moderate as a result of a weaker international expectation, with landed home rates boosting by 10% in 2022.

The very first quarter recorded a sharp decline of 50.6% q-o-q in prime non-landed property sales, because of extra buyer’s stamp responsibility walks for foreign buyers enforced in December last year. In the 2nd quarter, prime non-landed residential sales recovered by 29.4% q-o-q as business sentiments boosted and also capitalists looked to Singapore as a safe house in the midst of worldwide uncertainty.

Leading quantum sales remained to originate from new tasks like Les Maisons, which clocked the leading three highest transactions in value for 1H2022. Unit prices 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 unit at The Nassim which was sold for $20 million, indicating “demand for luxury-sized systems in beautiful all set to move-in problem”, states Keong.

Lacklustre sales in the Excellent Course Cottage (GCB) sector proceeded from in 2015, declining by 55.3% in 1H2022 from 2H2021, brought on by weak financial conditions as well as cost resistance from sellers who were unwilling to minimize price expectations. However, prime sites with eye-catching story sizes were still being negotiated. Lately, a GCB with a land size of 34,216 sq ft on 42 Chancery Lane was acquired by the daughter-in-law of Filipino mogul Andrew Tan for $66.1 million, according to Keong.

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

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“Deal worth for landed homes reached a total amount of $2.9 billion in 1H2022, a 46.9% decrease from $5.4 billion taped in 2H2021,” states the Knight Frank record.

” Nevertheless, an absence of salable stock in family-sized systems continued to limit sales,” claims Nicholas Keong, head of exclusive office at Knight Frank. “Foreign buyers’ rate of interest included the sale of 22 deluxe apartments in Draycott Eight to an Indonesian family members for a total estimated value of $168 million.”

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