Demand for condos above $10 mil more resilient than for those in $5 mil-to-$10 mil range

By EdgeProp Team / EdgeProp | October 27, 2018 8:12 AM SGT
Despite the July 6 property cooling measures, demand for luxury condominiums from the super-rich has not faltered. There were 10 sales of non-landed homes exceeding $10 million post-measures, observes Leong Boon Hoe, chief operating officer of List Sotheby’s International Realty.
So far this year, the number of such transactions has hit 50, which surpasses the 49 units sold in 2017. Leong believes this segment of the market is “resilient”.
Non-landed homes in the $5 million- to-$10 million range saw a significant fall in transaction volume from 208 units in 1H2018 to 59 units in the 3½-month period from July to mid-October, according to Sotheby’s research. For 2018, the firm is forecasting total transaction volume in this price bracket to ring in at 280 to 290 units. This is 15% below the 2017 volume, notes Leong.
For non-landed homes that start from $10 million, only 10 units were transacted in the 3½-month period post-cooling measures. However, Leong notes that a total of 50 units have been sold since the start of 2018, which is almost on a par with the 49 sold in 2017.
This shows that well-heeled buyers are less impacted by the recent property cooling measures that saw a 5% hike in additional buyer’s stamp duty, a lowering of the loan-to-value ratio for mortgages by 5% and an increase in cash outlay required for home purchases. “Their motivation to buy is influenced more by what they want to own as well as the prestige and lifestyle offered by the property rather than affordability factors,” says Leong. “This segment of the market is thus, generally more resilient than the $5 million-to $10 million segment.”
A 3,218 sq ft, four-bedroom unit on the second floor of The Nassim was sold for $10.68 million, $3,318 psf (Credit: Samuel Isaac Chua/ The Edge Singapore)
There were two transactions above $10 million in prime District 10 over the week of Oct 9 to 16. One was for a 3,218 sq ft, four-bedroom unit on the second floor of The Nassim. The 55-unit boutique luxury development on Nassim Hill was completed in 2015. The unit changed hands for $10.68 million ($3,318 psf) on Oct 11, according to URA caveats.
The highest psf price achieved at The Nassim was for a 1,927...