Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank
Drab sales in the Good Class Bungalow (GCB) segment continued from last year, declining by 55.3% in 1H2022 from 2H2021, caused by weaker economic problems as well as price resistance from vendors who were unwilling to reduce rate expectations. However, prime websites with eye-catching plot sizes were still being transacted. Just 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 tycoon Andrew Tan for $66.1 million, according to Keong.
The very first quarter recorded a sharp decline of 50.6% q-o-q in prime non-landed residential sales, due to additional purchaser’s stamp responsibility hikes for foreign buyers enforced in December last year. In the 2nd quarter, prime non-landed domestic sales recovered by 29.4% q-o-q as business sentiments improved as well as financiers aimed to Singapore as a safe house in the midst of international unpredictability.
“Deal value for landed residences got to a total of $2.9 billion in 1H2022, a 46.9% decline from $5.4 billion recorded in 2H2021,” mentions the Knight Frank report.
Based on URA data, prices for landed residences continued to raise in the 2nd quarter by 2.9%, bringing the rate growth to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, despite cooling down steps passed in December in 2014.
High-end non-landed residential sales got to $1.1 billion in the very first half of this year, sliding by 43.7% from the 2nd fifty percent of last year, according to a Knight Frank record launched today (July 12).
Top quantum sales continued to originate from brand-new tasks like Les Maisons, which clocked the leading three highest possible deals in worth for 1H2022. System rates varied from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th highest purchase in worth for 1H2022 was a resale system at The Nassim which was cost $20 million, suggesting “demand for luxury-sized systems in immaculate all set to move-in problem”, states Keong.
Difference between the assumptions of buyers and vendors, as well as spikes in premiums for landed houses, caused slower sales in 1H2022, discusses Keong. Ordinary system prices climbed by 14.5% over the past two years as the pandemic increased need for bigger space.
Keong anticipates deal activity to moderate due to a weak worldwide expectation, with landed residence prices increasing by 10% in 2022.
” Nevertheless, a lack of salable stock in family-sized devices continued to limit sales,” says Nicholas Keong, head of exclusive workplace at Knight Frank. “Foreign buyers’ interest included the sale of 22 high-end apartment or condos in Draycott 8 to an Indonesian household for a complete approximated worth of $168 million.”
Keong expects demand for deluxe non-landed homes, especially fully-furnished larger-sized devices all set for immediate tenancy, to stay solid in 2022, as global traveling returns to pre-pandemic levels.