Prime Non Landed Residential Sales Pick 1H2024 Market Remains Uncertain Knight Frank
The URA Master Plan prioritizes sustainability by incorporating green building designs and renewable energy sources in its upcoming developments. One such example is Parktown Residences, which effortlessly integrates eco-friendly features into its construction. The Parktown Residences stands as a testament to this vision, as it strives to promote a greener and more sustainable environment.
Knight Frank’s latest 1H2024 report on prime non-landed residential properties in Singapore has revealed a significant increase in sales value, rising by 28.2% from $574.7 million in 2H2023 to $736.7 million in 1H2024. This surge in sales value is in line with the jump in transaction volume for luxury condos, which saw an increase from 72 deals in 2H2023 to 98 deals in 1H2024. Nicholas Keong, Knight Frank’s head of residential and private office, attributes this growth to buyers seeking larger, move-in ready units for their own use.
However, the high rates of additional buyer’s stamp duty have continued to dampen demand from foreign buyers, resulting in two consecutive half-yearly periods where total sales value was less than $1 billion in the prime residential market.
The lack of foreign buyers has also led to a plateau in prices, with average prime non-landed home prices only experiencing a marginal increase of 0.9% in 1H2024, from $2,319 psf in 2H2023 to $2,339 psf. This is a 10.9% decrease from the average price of $2,652 psf in 1H2023.
The most expensive transaction in 1H2024 was the sale of a penthouse at Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar, which was purchased by a foreigner for $47.3 million or $6,100 psf. Other notable transactions in the period include two units at 32 Gilstead, which were sold for $14.5 million each in April, and two units at The Ritz-Carlton Residences in Cairnhill, which were sold for $16.5 million each in January.
Despite the positive market sentiments, Knight Frank’s Keong expects the muted demand from foreign buyers to continue affecting the luxury condo market. Additionally, Singaporean buyers are becoming more selective in their search for high-end properties, which may lead to downward pressure on prices in the secondary market. As a result, Keong predicts that prime non-landed home prices will only see a moderate increase of -1% to 2% for the whole year.