Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank
Leading quantum sales remained to come from new projects like Les Maisons, which clocked the leading 3 highest possible transactions in worth for 1H2022. Device costs varied from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th greatest deal in value for 1H2022 was a resale unit at The Nassim which was sold for $20 million, showing “demand for luxury-sized devices in immaculate ready to move-in condition”, claims Keong.
Keong anticipates need for high-end non-landed houses, particularly fully-furnished larger-sized systems ready for instant tenancy, to stay solid in 2022, as international traveling go back to pre-pandemic levels.
Based upon URA information, rates for landed houses continued to increase in the 2nd quarter by 2.9%, bringing the cost growth to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, regardless of cooling procedures passed in December in 2015.
“Transaction worth for landed residences reached an overall of $2.9 billion in 1H2022, a 46.9% decrease from $5.4 billion recorded in 2H2021,” specifies the Knight Frank report.
Drab sales in the Good Class Cottage (GCB) segment continued from in 2014, declining by 55.3% in 1H2022 from 2H2021, brought on by weak economic problems and also cost resistance from vendors that were unwilling to lower rate assumptions. Nonetheless, prime websites with attractive plot sizes were still being transacted. Just recently, 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 residential sales reached $1.1 billion in the first half of this year, sliding by 43.7% from the 2nd half of last year, according to a Knight Frank record launched today (July 12).
Keong expects deal activity to regulate as a result of a weak international outlook, with landed residence rates raising by 10% in 2022.
The very first quarter recorded a sharp decrease of 50.6% q-o-q in prime non-landed property sales, due to extra purchaser’s stamp obligation walks for foreign buyers enforced in December last year. In the second quarter, prime non-landed household sales recovered by 29.4% q-o-q as business sentiments improved as well as capitalists aimed to Singapore as a safe house in the midst of worldwide unpredictability.
Difference between the assumptions of buyers and vendors, as well as spikes in costs for landed residences, caused slower sales in 1H2022, explains Keong. Average unit rates increased by 14.5% over the past 2 years as the pandemic enhanced need for larger space.
” Nevertheless, a lack of saleable supply in family-sized devices continued to restrict sales,” says Nicholas Keong, head of private office at Knight Frank. “Foreign buyers’ interest included the sale of 22 luxury homes in Draycott 8 to an Indonesian family members for an overall approximated worth of $168 million.”