More luxury condos sold for above $3,000 psf

By Angela Teo
/ EdgeProp |
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Between Jan 23 and 30, two units at The Nassim fetched prices above $3,500 psf, according to caveats lodged with URA. The first was a 3,897 sq ft, four-bedroom unit on the fourth floor, which was sold for $14 million, or $3,593 psf, the highest psf price seen at the project since its launch in 2015.
The other unit, a 1,927 sq ft, three-bedroom unit on the third floor, went for $6.78 million, or $3,519 psf, the second-highest psf price in the development since its launch.
Prices at The Nassim so far in 2018 have averaged $3,179 psf, compared with $3,068 psf from its launch date until 2017. According to URA caveat data as at Feb 7, seven caveats have been lodged this year, while 18 caveats were lodged between its launch and end-2017. This means prices this year are about $100 psf higher than before.
Shot of The Nassim
According to PropNex’s Lee, $3,100 to $3,200 psf is the new average for units at The Nassim (Credit: The Edge Singapore)
According to Dominic Lee, head of The Luxury Team at PropNex Realty, this also means that $3,100 to $3,200 psf is the new average for units at The Nassim. Completed in 2015, the 55-unit luxury freehold condominium is located at Nassim Hill, near the Nassim Road and Cluny Park Good Class Bungalow Areas. It sits on the site of the former ANA Hotel, which DBS Land (now part of CapitaLand) bought in 1999.
It is not just The Nassim that has seen higher average psf prices in 2018. Prices at the 174-unit Gramercy Park have also risen this year. Based on URA caveat data as at Feb 7, five units at the freehold condos were sold this year at an average of $3,114 psf. This is about 13% higher than the $2,753 psf average for the 134 units sold between its launch in May last year and end-2017.
The new asking price for units at Gramercy Park is now $3,000 psf and above, says developer City Developments.
As prices of other freehold condos such as Ardmore Three and Reignwood Hamilton Scotts have also crossed $3,400 psf and $3,500 psf, respectively, in the past 12 months, $3,000 to $3,500 psf is the new norm for a luxury condo, says PropNex’s Lee. But this is dependent on the location and amenities of the project, he adds.
Tay Kah Poh, executive director and head of residential services at Knight Frank, says, “It depends on your definition of luxury, but on the whole, I [think] $3,000 psf is a reasonable cut-off price for luxury condo units now, compared with, say, $2,800 psf in the past.”
Barring any external shocks, Tay expects the rise in luxury condo prices to continue at about 5% to 6% through 2018, supported by the shrinking inventory of luxury condominium units, relatively lower prices compared with other global cities such as Hong Kong and London, and overall cyclical improvement in business conditions.
“If Singapore’s economy continues to thrive, and infrastructure building and re-structuring efforts continue, prices for new luxury condos could cross $4,500 psf within the next decade,” Tay says. “That is not unthinkable, since these numbers were already achieved before the Global Financial Crisis.”
This article appeared in EdgeProp Pullout, Issue 817 (Feb 12, 2018).

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