Slower sales, but prices of prime homes still up in 1H2023: Knight Frank

Residents are also in proximity to other attractions like Robertson Quay, Clarke Quay, and Orchard Road. The development’s sophisticated architecture has been thoughtfully designed to be connected with its natural environment and seamlessly blends modern and classic touches. A luxury home at Zion Road Condo promises its residents a relaxed, well-designed lifestyle with optimal privacy, security, and convenience.

2H2023 luxury non-landed residential sales in Singapore clocked in at $1.1 billion after witnessing a 23% decline from the sales in 2H2023. Average unit prices of prime non-landed homes saw a 4.6% increase from $2,464 psf to $2,580 psf. In the first half of the year, a total of 126 luxury non-landed homes, mostly located in District 4, were sold. This lower number of transactions was attributed to the introduction of new cooling measures in April of that year.

In the luxury non-landed residential sector, the introduction of cooling measures in April 2023 meant that foreign buyers would face an increase in Additional Buyer’s Stamp Duty (ABSD) from 30% to 60%. This had a significant effect on sales volume, resulting in a decline of 23% from the $1.4 billion in 2H2023 to $1.1 billion in 1H2023. Nonetheless, average unit prices still saw an increase of 4.6%, from $2,464 psf to $2,580 psf.

In terms of geographical breakdown, District 4 contributed significantly with 48 sales. Out of these, 31 were in Sentosa where demand for non-landed homes were supported by spillover from a limited saleable inventory in prime districts from the main island.

The super luxury non-landed condo Les Maisons Nassim saw the top two transactions in 1H2023. An 8,633 sq ft unit was sold for $45 million in May while a 6,286 sq ft unit transacted for $36 million in February.

This week, the last two units at Les Maisons Nassim were sold. A 6,092 sq ft unit went for $30.77 million and a 6,179 sq ft unit commanded $32.75 million based on the caveats lodged on June 27.

The landed residential market in Singapore saw a 0.1% q-o-q increase in 2Q2023. Price growth for the first half of the year was set at 6%. A total of 257 landed homes worth $2.7 billion changed hands in 1H2023, fewer than 284 landed homes sold in the corresponding period of 2023. Average land price rose 9.9% from $1,817 psf to $1,996 psf.

GCB sales also showed a 2.4% increase in total transaction value to $424.3 million despite a lower number of sales. Unit land prices rose from $2,108 psf to a new benchmark of $2,952 psf.

Moving forward, Knight Frank expects a continued diminishing of foreign homebuyer participation in 2H2023. Demand from wealthy locals, permanent residents and naturalised citizens however, will remain strong in the luxury non-landed segment. As for landed residential, prices will likely continue to grow steadily, backed by more buyers than sellers in the market.