Les Maisons Nassim, which is targeted for completion by end 2023, saw the top two luxury non-landed residential transactions in 1H2023 (Picture: Les Maisons Nassim website)
SINGAPORE (EDGEPROP) - Luxury non-landed home sales clocked $1.1 billion in 1H2023, a 23% decline from the $1.4 billion in sales racked up in 2H2022, according to a research report by Knight Frank. A total of 126 luxury non-landed homes were sold in the first half of the year, fewer than the 163 transactions recorded in 2H2022.
Knight Frank attributes the lower number of transactions to “a state of pause” primarily caused by the introduction of new cooling measures on April 27, which include the doubling of additional buyer’s stamp duty applicable to foreigners from 30% to 60%.
Despite the lower sales volume, the average unit price of prime non-landed homes saw a 4.6% increase to $2,580 psf in the first half of the year, compared to $2,464 psf in 2H2022.
Knight Frank highlights that of the 126 luxury condos sold in 1H2023, 48 were in District 4, out of which 31 were in Sentosa. “Interestingly, non-landed homes in Sentosa gained traction, resulting from spillover demand of such homes in the prime districts from the main island, as the number of home buyers continued to outweigh the limited inventory of saleable stock in the prime districts,” the report adds.
Demand for uncompleted homes remained evident, with super luxury condo Les Maisons Nassim accounting for the top two luxury non-landed residential transactions in 1H2023. An 8,633 sq ft unit at Les Maisons Nassim fetched $45 million ($5,213 psf) in May, while a 6,286 sq ft unit was sold for $36 million ($5,727 psf) in February.
Earlier this week, EdgeProp Singapore reported the sale of the last two units at Les Maisons Nassim, after a 6,092 sq ft unit fetched $30.77 million ($5,050 psf) and a 6,179 sq ft unit was sold for $32.75 million ($5,300 psf), based on caveats lodged on June 27.
For the landed residential market, flash estimates by URA released on July 3 showed that prices of landed homes rose 0.1% q-o-q in 2Q023, bringing the total increase in landed home prices to 6% for the first half of the year.
According to Knight Frank, 257 landed homes worth $2.7 billion changed hands in 1H2023. In comparison, 284 landed homes worth $2.7 billion were sold in 1H2023. Unit land prices rose 9.9% to $1,996 psf in 1H2023, from $1,817 psf in 2H2022.
“In 1H2023, landed home sales continued to move despite economic volatility, as wealthy individuals and a new breed of younger high-net-worths remained drawn to the exclusivity of these niche homes,” the report states.
In the Good Class Bungalow (GCB) segment, total transaction value rose 2.4% to $424.3 million in 1H2023, despite a fall in the number of homes transacted from 10 GCBs in 2H2022 to eight GCBs in 1H2023. Unit land prices rose from $2,108 psf in 2H2022 to $2,952 psf in 1H2023, setting a new land price benchmark for the segment, Knight Frank highlights.
In terms of market outlook, Knight Frank points out that for prime-non landed homes, a drop in foreign homebuyer participation post-cooling measures will characterise the slowing market for the remainder of 2023. It adds that the measures have also resulted in some sellers withdrawing their properties from the market, even though demand from wealthy locals, permanent residents and naturalised citizens remains.
For the landed segment, Knight Frank expects prices to continue growing in “a steady fashion” in 2H2023, underpinned by more buyers than sellers in the market.
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