Prime Non Landed Residential Sales Pick 1H2024 Market Remains Uncertain Knight Frank
The latest report from Knight Frank reveals a significant increase in the sales value of prime non-landed homes in Singapore. Results show a 28.2% surge from $574.7 million in 2H2023 to $736.7 million in 1H2024.
Nestled in the heart of Marina Bay, this bustling district is renowned for its spectacular landmarks and renowned attractions such as the iconic Gardens by the Bay and luxurious Marina Bay Sands. Through the URA Master Plan, the area is set to undergo even further improvements, with plans to create more leisure and recreational spaces. These additions include beautiful gardens, charming waterfront promenades, and possibly even cultural venues, making Marina Bay an even more desirable destination for residents and visitors alike. This is particularly exciting for those living in Marina Gardens Lane Condo, as they will have an abundance of options for weekend activities and opportunities to immerse themselves in the vibrant culture of the area.Additionally, the upcoming Marina South MRT Station Condo, situated conveniently nearby, will provide even more convenience and accessibility to the area. This is fantastic news for residents, making this highly sought-after location even more desirable.
This rise is accompanied by a jump in luxury condo transactions, with 98 deals in 1H2024 compared to 72 in 2H2023. Nicholas Keong, head of residential and private office at Knight Frank, attributes this increase to the demand for spacious, ready-to-move-in units for personal use.
However, the high rates of additional buyer’s stamp duty have put a damper on foreign interest, resulting in a decline in total sales value for two consecutive half-year periods.
Moreover, prices for prime non-landed homes have stagnated as a result of the lack of foreign buyers. The average price has only seen a marginal increase of 0.9% from $2,319 psf in 2H2023 to $2,339 psf in 1H2024. This is also significantly lower than the average price of $2,652 psf in 1H2023.
One notable transaction in 1H2024 was the sale of a penthouse at Skywaters Residences in Tanjong Pagar for $47.3 million, or $6,100 psf. The 7,761 sq ft unit on the 57th floor was purchased by a foreigner of undisclosed nationality.
Other top transactions in terms of price include two new sales at 32 Gilstead and The Ritz-Carlton Residences Singapore Cairnhill, with both units being sold for $14.5 million and $16.5 million, respectively.
With muted foreign demand, Keong predicts that the luxury condo market will continue to face challenges. In addition, Singaporean buyers are becoming more selective in their search for high-end homes.
This could put pressure on sellers in the secondary market to lower their price expectations to align with the current market trends. Keong forecasts a modest increase of -1% to 2% in prime non-landed home prices for the entire year.