Prime non-landed residential properties experienced a significant increase in sales value, rising by 28.2% in the first half of 2024. According to Knight Frank’s 1H2024 report on prime non-landed residential properties, the market value surged from $574.7 million in 2H2023 to $736.7 million in 1H2024.
Key transactions during this period included two notable sales at the 14-unit development, 32 Gilstead, located off Newton Road and Dunearn Street. Both units were sold in April for $14.5 million each. Additionally, at The Ritz-Carlton Residences Singapore Cairnhill, two units were sold in January for $16.5 million each.
Despite this uptick, foreign demand for luxury condominiums remains subdued, a trend expected to persist, says Nicholas Keong, Head of Residential and Private Office at Knight Frank. Concurrently, local buyers are becoming increasingly cautious in their search for high-end properties.
This caution has been observed alongside a rise in luxury condominium transactions, with the number of deals increasing from 72 in 2H2023 to 98 in 1H2024. Keong attributes this growth primarily to buyers seeking family-sized, ready-to-move-in units, mainly for their occupancy.
The lack of interest from overseas buyers has also contributed to stabilizing prices, with average prime non-landed residential property prices seeing only a modest half-yearly increase of 0.9%, rising from $2,319 per square foot (psf) in 2H2023 to $2,339 psf in 1H2024. This figure is 10.9% lower than the average price of $2,652 psf recorded in 1H2023.
The most significant prime non-landed residential transaction in 1H2024 was the sale of a penthouse at Skywaters Residences, located at 1 Prince Edward Street in Tanjong Pagar. The 7,761 square foot penthouse on the 57th floor was sold for $47.3 million, or $6,100 psf. The buyer was a foreigner, though their nationality was not disclosed.
As a result of these trends, sellers in the secondary market may face challenges in adjusting their price expectations to align with current market levels. Keong predicts that the rise in prime non-landed residential property prices will likely remain between -1% and 2% for the entire year.
Moreover, the high additional buyer’s stamp duty continues to dampen demand from foreign buyers, leading to two consecutive half-year periods where the total sales value in the prime residential market has remained below $1 billion.