SINGAPORE (EDGEPROP) - This year, it was the biggest penthouses that fetched the highest premium. Based on caveats lodged from the start of the year to end November, 18 penthouses were sold in the Core Central Region (CCR), raking in a total of $434.18 million. This is almost double the $220.03 million recorded for the top 10 penthouse deals transacted for the whole of 2020.
Read also: Unit at Les Maisons Nassim sold at a high of $5,930 psf
The average price for the top 10 penthouses for the first 11 months this year was $4,875 psf, up 55% y-o-y compared to the $3,141 psf achieved in 2020 (See Table).
Such penthouses command a premium in any condominium as they are limited in number, have expansive floor area, open terrace with panoramic views, private pool, designer finishes and fittings. The buyers are likely to be a mix of locals, permanent residents (PRs) and foreigners, says Han Huan Mei, List Sotheby’s International Realty director of research.
“As foreigners are not eligible to buy landed homes, luxury penthouses in premier locations that check all the boxes will attract them,” notes Han. “Some are buying for the bragging rights that come with owning such trophy assets.”
What is noteworthy is that the latest price benchmarks were set at new luxury project launches this year, for instance, Park Nova, Les Maisons Nassim, CanningHill Piers and Klimt Cairnhill. (Discover all Singapore new launch condos in 2021)
Four of the 10 penthouse deals in January–November achieved prices between $5,300 psf and $6,210 psf, a feat that was only last seen a decade ago when two 3,089 sq ft units at The Marq on Paterson Hill were sold at $6,215 psf and $6,650 psf in August and November 2011 respectively.
The price differential between freehold and leasehold condos have become less pronounced in recent years, especially for new launches in prime locations, or iconic projects with strong attributes, says List Sotheby’s Han. (Discover insightful data of any Singapore condominium with our condo directory)
For example, in the downtown area, 99-leasehold penthouses in skyscrapers at South Beach, Marina Bay Residences and Wallich Residence have commanding views of Marina Bay and the city. Prices were able to cross $4,000 psf.
Penthouses in new freehold projects in the prime Orchard Road districts of 9 and 10 such as Park Nova, Les Maisons Nassim and Klimt Cairnhill, have achieved prices of $5,300–$6,200 psf.
Most recently, the launch of 99-year leasehold CanningHill Piers at Clarke Quay saw its sole super penthouse achieve a price of $48 million or $5,360 psf. It is located on the site of the former Liang Court just outside the Orchard Road locale (within the Rest of Central Region). This unit is situated on the 48th storey and boasts panoramic views of the city and the Singapore River. Even though it’s considered to be in the RCR, it is centrally located and the super penthouse was the second biggest penthouse deal in terms of absolute price this year.
“This shows that savvy investors are taking into consideration various factors such as the potential for future price appreciation, rarity, product quality and functionality on top of location and tenure in their purchase,” says Han.
With the property cooling measures in place, List Sotheby’s expects a slowdown in the sales momentum in 1H2022 as buyers and sellers take time to digest their implications. “The economic and business environment would be affected by the ongoing uncertainties caused by Covid-19 and the Omicron variant as well as the possibility that interest rates might begin to rise in the later part of 2022,” according to Han.
Check out the latest listings near Les Maisons Nassim, Park Nova, CanningHill Piers, Hilltops, The Marq on Paterson Hill, Marina Bay Residences, Wallich Residence