Luxury non-landed residential sales fall 43.7% in 1H2022: Knight Frank
High-end non-landed household sales got to $1.1 billion in the very first fifty percent of this year, sliding by 43.7% from the 2nd half of last year, according to a Knight Frank report launched today (July 12).
“Deal value for landed houses reached a total amount of $2.9 billion in 1H2022, a 46.9% decline from $5.4 billion recorded in 2H2021,” mentions the Knight Frank record.
Keong expects demand for luxury non-landed residences, specifically fully-furnished larger-sized systems prepared for prompt occupancy, to remain solid in 2022, as worldwide traveling returns to pre-pandemic degrees.
” Nevertheless, an absence of saleable stock in family-sized devices remained to restrict sales,” claims Nicholas Keong, head of exclusive office at Knight Frank. “Foreign buyers’ interest consisted of the sale of 22 high-end houses in Draycott Eight to an Indonesian family members for an overall estimated worth of $168 million.”
Based on URA data, costs for landed houses continued to enhance in the second quarter by 2.9%, bringing the price growth to 7.3% for 1H2022. The half-yearly growth was steeper than 6.3% in 1H2021, despite cooling measures enacted in December last year.
Incongruity between the expectations of customers as well as vendors, in addition to spikes in costs for landed homes, led to slower sales in 1H2022, describes Keong. Average system prices increased by 14.5% over the past 2 years as the pandemic heightened need for larger home.
Top quantum sales remained to originate from new jobs like Les Maisons, which clocked the top 3 highest transactions in worth for 1H2022. System prices ranged from $4,953 to $5,461 psf (or $34.6 million to $59.8 million). The 4th highest transaction in value for 1H2022 was a resale device at The Nassim which was sold for $20 million, suggesting “demand for luxury-sized devices in excellent ready to move-in problem”, claims Keong.
The first quarter documented a sharp decrease of 50.6% q-o-q in prime non-landed property sales, due to extra customer’s stamp responsibility walkings for foreign buyers imposed in December in 2015. In the 2nd quarter, prime non-landed property sales recuperated by 29.4% q-o-q as service views boosted as well as capitalists wanted to Singapore as a safe house in the midst of international uncertainty.
Keong expects purchase activity to moderate because of a weak worldwide expectation, with landed home costs raising by 10% in 2022.
Drab sales in the Good Course Cottage (GCB) section continued from in 2014, declining by 55.3% in 1H2022 from 2H2021, caused by weak financial problems and also cost resistance from vendors who hesitated to decrease cost expectations. Nonetheless, prime websites with eye-catching story sizes 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 magnate Andrew Tan for $66.1 million, according to Keong.
