[UPDATE] Klimt Cairnhill relaunches as Chinese buyers return to Singapore’s luxury condo market
By Cecilia Chow
/ EdgeProp Singapore |
SINGAPORE (EDGEPROP) - Since reopening the sales gallery of Klimt Cairnhill on Jan 3 — after a six-week closure that saw all three showflats renovated — Low Keng Huat, the property developer of the 138-unit luxury condominium on Cairnhill Road, has sold 18 units. This brings the tally of units sold to 25 units (28.4%) out of 88 units released to date. The average price achieved is $4,061 psf as of Jan 31.
Alvin Teo, executive director of Low Keng Huat, says Singaporeans made up 25% of the buyers, with permanent residents accounting for another 10%. Another 25% are foreign buyers from Southeast Asia, namely Indonesia, Cambodia, Myanmar and Vietnam.
However, it was the Chinese nationals who drove sales at Klimt Cairnhill since the start of the year. They accounted for 40% of the buyers, says Teo. There has been a resurgence in buying interest from Chinese homebuyers since travel restrictions were lifted in China on Jan 8, after a three-year Covid-19 lockdown.
“Many of these Chinese buyers are new to Singapore,” says Dominic Lee, PropNex’s head of the luxury team. “They want large units, freehold tenure and a prime district address. There is very little new stock of such units available today. That is why many of the large, four-bedroom units at Klimt Cairnhill were taken up by the Chinese buyers.”
Since Covid-19, demand for large units has increased. When Klimt Cairnhill previewed in August 2021, only the large units — the three- and four-bedroom apartments and penthouses — were released for sale.
Teo: The timing for the relaunch of Klimt Cairnhill is much better for homebuyers”, given the shorter project completion period, with Temporary Occupation Permit expected towards the end of 2024 or early 2025 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Big units in demand
There are just two penthouses at Klimt Cairnhill: A 4,898 sq ft six-bedroom simplex on the 36th floor; and a 5,290 sq ft, six-bedroom duplex on the 35th and 36th floor.
The simplex penthouse was sold in November 2021 for $26 million. At $5,309 psf based on the floor area, it set a new record in the development.
Two parties are vying for the 5,920 sq ft duplex penthouse: A local and a Chinese national. Priced above $5,300 psf, the overall ticket price for the penthouse is more than $30 million. PropNex brokered the sale.
Low Keng Huat offered multiple-unit buyers the option of amalgamating two four-bedders on consecutive floors to cater to the demand for sizeable units with over 4,000 sq ft of floor space. The two units combined will have six ensuite bedrooms and will be served by an internal staircase and a private lift. As Klimt Cairnhill has two types of four-bedroom units — 2,056 sq ft and 2,368 sq ft each — the amalgamated units will be duplexes of 4,112 sq ft and 4,736 sq ft, respectively.
Seven of the four-bedroom units sold went to multiple-unit purchasers including those who bought together with other family members. Some were given the option to amalgamate their units. The buyers were predominantly Chinese and Southeast Asian buyers, says Low Keng Huat’s Teo. So far, none of them has taken up the offer to amalgamate the units.
The showflat of the 2,368 sq ft four-bedroom unit at Klimt Cairnhill (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Ken Low, the managing partner of SRI, is not surprised by the demand for the four-bedroom units at Klimt Cairnhill after the firm brokered the sale of the first unit of 2,056 sq ft on the 33rd floor for $7.72 million ($3,755 psf) on Jan 7. The buyer is also said to be from China. “Attention shifted to Klimt Cairnhill after the large units at the 54-unit Park Nova were sold out,” says Low. Even Les Maisons Nassim, which has just 14 units, with the smallest starting from 6,049 sq ft and prices from $35 million, has already sold 11 units to date. The latest transaction at Les Maisons Nassim was for a 6,179 sq ft unit on the second level that fetched $36 million ($5,827 psf), based on the caveat lodged.
‘Larger than average unit sizes’
At Klimt Cairnhill, it is not just the four-bedroom units that are sizeable but the two- and three-bedroom units are “larger than average”, says Teo. Two-bedroom units at Klimt Cairnhill are sized at 829 sq ft, with two-bedroom-plus- study units of 893 sq ft. Three-bedroom units have two sizes: 1,432 sq ft and 1,496 sq ft.
Since the start of the year, Teo says there has been an increase in enquiries for the two-bedroom units from local buyers, mainly young couples and families with young children. He attributes this partly to Klimt Cairnhill’s proximity to schools, with Anglo-Chinese School (Junior) located within a 1km range; Eton- House International Pre-School a two-minute drive away; and Anglo-Chinese School (Barker Road), St Joseph’s Institution and Singapore Chinese Girls’ School, within a six-minute drive.
Given the increased interest in the two-bedroom types, Low Keng Huat is releasing all 50 units of two- and two-bedroom-plus-study apartments when it relaunches Klimt Cairnhill on Feb 6.
The two-bedroom units will be priced from $3,200 to $3,600 psf. Absolute prices of the 829 sq ft, two-bedroom units start from $2.65 million for the lowest floor, to just under $3 million for the highest floor. Meanwhile, the two-bedroom-plus study units of 893 sq ft will have units priced from $2.86 million to about $3.2 million.
Walk-in wardrobe of the master bedroom at the four-bedroom showflat of Klimt Cairnhill (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Return of the super-rich Chinese?
The demand for large units and penthouses in the prime districts was also seen at 3 Orchard By-the-Park. According to sources, a Chinese buyer swept up both duplex penthouses in the Prestige Penthouse Collection. Each duplex is 6,092 sq ft in size and has five bedrooms and a swimming pool. The units also feature interiors designed by Formwerkz to the tune of $1.7 million each.
The buyer intends to amalgamate the two duplex penthouses. The purchase price is believed to be close to $60 million for both penthouses combined, which translates to a unit price of $4,963 to $5,029 psf. According to market sources, ERA brokered the sale.
“This could be the year when the luxury market sees more high-profile deals with the return of super-wealthy Chinese,” says Mark Yip, CEO of Huttons Asia. “This may not be fully reflected in the caveats as it is not compulsory to lodge a caveat. Some of these deals may have a different deal structure or are purchased under a non-China passport.”
Foreign buyers, especially those from China, are looking to purchase units for their own use, says Doris Ong, deputy CEO of ERA Singapore. “They want units where they can move into within a short period of time. Most of them have already done their fact-finding before they arrive in Singapore. They have a pretty good idea of what they want to buy. So, the decision to purchase is a lot faster.”
The relaunch of Klimt Cairnhill will feature new showflats and the release of 50 units of two- and two-bedroom-plus-study units (pictured) [Samuel Isaac Chua/EdgeProp Singapore)
Narrowing price gap draws Singaporean value-seekers
ERA’s Ong sees the two-bedroom units appealing to those who want a foothold in prime District 9. The two-bedroom units have a more affordable entry price for singles or young couples who want to live near their parents, she says. “Their parents could purchase a unit or help them with the down payment.” She adds that higher interest rates will not be a significant factor for buyers in this segment.
Another reason for the spike in interest in condominium projects in the Core Central Region (CCR) is the narrowing price gap relative to the city fringe or the Rest of Central Region (RCR) projects. For the whole of last year, the median price of RCR projects was $2,242 psf, while that of CCR projects was $2,806 psf. This reflects a price gap of just 25.2% in 2022, compared to 42.7% over the past decade from 2012 to 2021, says Huttons Asia.
In December, new RCR projects transacted at a median price of $2,648 psf, while CCR projects were at $2,886 psf, with the price gap between the two segments down to just 9%. “If prices were to remain stable in 2023, this narrowed price gap would persist, and there will be more buyers looking to buy a unit in a CCR project as it may offer better value,” says Huttons’ Yip.
This could have contributed to the surge in sales at other freehold projects in the CCR that were launched earlier. An example is Perfect Ten in Bukit Timah, launched three days after the December 2021 set of cooling measures. The 230-unit freehold project on Bukit Timah Road in prime District 10 is over 81.3% sold to date. The average price from December 2021 to December 2022 was $2,995 psf. For the 10 units sold this year so far, the average price increased to $3,207 psf.
Transaction prices of existing condos in the Cairnhill neighbourhood (Source: EdgeProp Landlens)
Another project relaunched at the start of the year with a new sales gallery and showflat is the 39-unit Cairnhill 16. Since Jan 5, eight units have been sold. Most buyers are said to be local Singaporeans, buying to move in as the project is scheduled for completion in 4Q2023. Units sold averaged $2,682 psf, based on caveats lodged. “Cairnhill 16 has smaller unit sizes and more affordable quantum prices, which tends to attract Singaporean investors and homebuyers,” says SRI’s Low.
He attributes some of the buying demand at Cairnhill 16, Perfect Ten and Klimt Cairnhill to the change in the Ministry of Education’s primary one school registration system last year. “With fewer places allocated for children of Phase 2A, such as alumni members, those who want their children to attend their alma mater may have decided to buy a unit in a condominium within 1km of the school to increase their chances,” adds Low.
With Chinese high-net-worth and Singaporean buyers eyeing homes in the CCR, Low Keng Huat’s Teo feels that “the timing for the relaunch of Klimt Cairnhill is much better for homebuyers”, given the shorter project completion period, with Temporary Occupation Permit expected towards the end of 2024 or early 2025.
Check out the latest listings near Klimt Cairnhill, Cairnhill Road, Cairnhill 16, Park Nova, Les Maisons Nassim, 3 Orchard By-the-Park, Perfect Ten, Anglo-Chinese School (Junior), Eton- House International Pre-School, Anglo-Chinese School (Barker Road), St Joseph’s Institution, Singapore Chinese Girls’ School
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