Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank
Based upon URA data, rates for landed residences continued to raise in the second quarter by 2.9%, bringing the price development to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, despite cooling measures passed in December last year.
Lacklustre sales in the Great Class Cottage (GCB) section continued from last year, decreasing by 55.3% in 1H2022 from 2H2021, brought on by weaker financial conditions and cost resistance from vendors who hesitated to lower rate assumptions. Nonetheless, prime websites with appealing story sizes were still being transacted. Recently, a GCB with a land dimension of 34,216 sq ft on 42 Chancery Lane was purchased by the daughter-in-law of Filipino magnate Andrew Tan for $66.1 million, according to Keong.
The first quarter documented a sharp decrease of 50.6% q-o-q in prime non-landed domestic sales, because of extra purchaser’s stamp duty walkings for foreign buyers imposed in December in 2015. In the 2nd quarter, prime non-landed domestic sales recuperated by 29.4% q-o-q as company sentiments boosted and also investors aimed to Singapore as a safe haven in the midst of international unpredictability.
“Deal value for landed houses got to a total of $2.9 billion in 1H2022, a 46.9% decrease from $5.4 billion recorded in 2H2021,” states the Knight Frank record.
” However, a lack of saleable stock in family-sized systems continued to restrict sales,” states Nicholas Keong, head of personal workplace at Knight Frank. “Foreign buyers’ rate of interest included the sale of 22 deluxe homes in Draycott Eight to an Indonesian household for an overall estimated value of $168 million.”
Incongruity in between the assumptions of purchasers as well as vendors, in addition to spikes in costs for landed houses, brought about slower sales in 1H2022, clarifies Keong. Typical unit prices rose by 14.5% over the past two years as the pandemic heightened need for bigger home.
Keong expects demand for luxury non-landed homes, especially fully-furnished larger-sized units prepared for immediate occupancy, to remain solid in 2022, as global traveling go back to pre-pandemic degrees.
Leading quantum sales continued to come from new projects like Les Maisons, which clocked the leading three highest possible transactions in value for 1H2022. Device prices varied from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th greatest purchase in worth for 1H2022 was a resale system at The Nassim which was sold for $20 million, showing “need for luxury-sized devices in immaculate ready to move-in problem”, says Keong.
Keong expects purchase task to moderate due to a weaker global expectation, with landed house costs boosting by 10% in 2022.
Deluxe non-landed property sales reached $1.1 billion in the very first half of this year, sliding by 43.7% from the second half of last year, according to a Knight Frank record released today (July 12).