Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank


Difference between the assumptions of customers and vendors, as well as spikes in costs for landed homes, brought about slower sales in 1H2022, clarifies Keong. Ordinary system prices increased by 14.5% over the past two years as the pandemic increased need for larger living spaces.

” Nevertheless, a lack of saleable supply in family-sized units continued to restrict sales,” says Nicholas Keong, head of personal office at Knight Frank. “Foreign buyers’ interest consisted of the sale of 22 luxury apartments in Draycott Eight to an Indonesian family members for a total approximated worth of $168 million.”

The very first quarter documented a sharp decline of 50.6% q-o-q in prime non-landed domestic sales, as a result of extra buyer’s stamp responsibility walkings for foreign buyers enforced in December in 2015. In the second quarter, prime non-landed property sales recouped by 29.4% q-o-q as organization sentiments boosted and also investors wanted to Singapore as a safe haven in the midst of international uncertainty.

“Transaction worth for landed homes got to a total of $2.9 billion in 1H2022, a 46.9% decline from $5.4 billion taped in 2H2021,” specifies the Knight Frank report.

Lacklustre sales in the Great Class Cottage (GCB) segment continued from in 2014, declining by 55.3% in 1H2022 from 2H2021, brought on by weak economic conditions as well as price resistance from vendors that were unwilling to minimize price expectations. Nonetheless, prime sites with eye-catching story dimensions were still being transacted. Just recently, a GCB with a land size of 34,216 sq ft on 42 Chancery Lane was bought by the daughter-in-law of Filipino tycoon Andrew Tan for $66.1 million, according to Keong.

Keong prepares for demand for deluxe non-landed houses, particularly fully-furnished larger-sized units all set for immediate occupancy, to continue to be strong in 2022, as international travel go back to pre-pandemic levels.

Based on URA information, costs for landed homes continued to enhance in the 2nd quarter by 2.9%, bringing the price growth to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, regardless of cooling down procedures enacted in December in 2015.

Keong expects deal activity to regulate as a result of a weak global overview, with landed residence rates raising by 10% in 2022.

High-end non-landed domestic sales reached $1.1 billion in the very first half of this year, sliding by 43.7% from the second half of last year, according to a Knight Frank report released today (July 12).

New Port Residences condominium

Leading quantum sales continued to originate from brand-new jobs like Les Maisons, which clocked the leading three greatest transactions in value for 1H2022. System costs ranged from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th highest transaction in worth for 1H2022 was a resale unit at The Nassim which was sold for $20 million, suggesting “demand for luxury-sized systems in pristine prepared to move-in problem”, says Keong.


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