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

Lacklustre sales in the Good Class Bungalow (GCB) sector continued from in 2014, decreasing by 55.3% in 1H2022 from 2H2021, brought on by weaker financial conditions and price resistance from sellers that were unwilling to decrease price assumptions. Nonetheless, prime websites with appealing plot dimensions were still being negotiated. Recently, a GCB with a land dimension of 34,216 sq ft on 42 Chancery Lane was acquired by the daughter-in-law of Filipino magnate Andrew Tan for $66.1 million, according to Keong.

Based on URA information, prices for landed residences continued to enhance in the second quarter by 2.9%, bringing the rate growth to 7.3% for 1H2022. The half-yearly development was steeper than 6.3% in 1H2021, despite cooling measures established in December in 2014.

High-end non-landed domestic sales reached $1.1 billion in the 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).

The very first quarter documented a sharp decrease of 50.6% q-o-q in prime non-landed residential sales, as a result of additional customer’s stamp duty walkings for foreign buyers enforced in December in 2015. In the 2nd quarter, prime non-landed property sales recovered by 29.4% q-o-q as service beliefs improved and investors aimed to Singapore as a safe haven in the midst of worldwide unpredictability.

Difference in between the assumptions of purchasers and also sellers, along with spikes in costs for landed houses, brought about slower sales in 1H2022, explains Keong. Average device rates climbed by 14.5% over the past two years as the pandemic enhanced need for bigger space.

Keong prepares for demand for deluxe non-landed residences, especially fully-furnished larger-sized units all set for immediate tenancy, to continue to be strong in 2022, as global travel returns to pre-pandemic degrees.

Leading quantum sales continued to originate from brand-new projects like Les Maisons, which clocked the leading 3 greatest purchases in worth for 1H2022. Unit rates varied from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The fourth greatest transaction in worth for 1H2022 was a resale device at The Nassim which was sold for $20 million, suggesting “need for luxury-sized devices in immaculate prepared to move-in condition”, states Keong.

Keong expects transaction activity to moderate due to a weaker worldwide outlook, with landed home rates enhancing by 10% in 2022.

Leedon Green showflat location

“Purchase value for landed residences got to a total amount of $2.9 billion in 1H2022, a 46.9% decline from $5.4 billion recorded in 2H2021,” mentions the Knight Frank report.

” Nonetheless, a lack of saleable supply in family-sized systems remained to restrict sales,” says Nicholas Keong, head of exclusive office at Knight Frank. “Foreign buyers’ passion consisted of the sale of 22 deluxe apartments in Draycott Eight to an Indonesian family for an overall approximated worth of $168 million.”

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