The prices of luxury condominiums in Singapore rise 5.2 percent y-o-y during 3Q2021 OrangeTee&Tie

A study on Singapore’s high-end residence market by OrangeTee&Tie shows that the prices for luxury condominiums that are new have increased by 5.2 percent y-o-y, to $2,652 per square foot in 3Q2021, compared with $2,521 in 3Q2020. The prices of luxury condos for sale increased by 7.1 percent y-o-y, to $1,899 per sq ft in the 3Q2021 quarter, compared to $1773 per sq ft a year earlier.
As per Christine Sun, senior vice-president of research and analytics at OrangeTee&Tie the Singapore real estate sector has benefited from the rapid growth of inward foreign investment in the wake of the Covid-19 epidemic.
“In the first half of this year, real estate investment sales reached more than $9 billion boosted by the residential and industrial sectors,” she adds.
New buyers are also entering the luxury housing market for new entrepreneurs or those working in new industries such as biomedical, fintech and multinational technology firms, according to Sun.
In 2Q2021, private home transactions within the Core Central Region (CCR) increased by approximately 25% in q-o-q to 1,930 units resold. This was the largest resales number in this sector since 4Q2010 , when 2,014 units were sold.
This quarter, homes sold in the CCR reach an 11-year-high quarterly record of 813 transactions while resales volume hit an all-time high of 1,109 transactions. In the first nine months of the year three39 units of condos were purchased for over $5 million And of that number there were 74 units that sold for greater than 10 million for each.
Based on according to the OrangeTee research, the share of luxury units with large size is also increasing. In the 3Q2021, 42.3% of condo purchases in the CCR comprised at least 1,200 sq feet which was up from 37.4 percent in the prior quarter, and 31.8 percentage more than 1Q2021. The demand for luxurious condos with more than 1,600 square feet increased to 23.6 percent in 3Q2021, a rise from 22.1 percent in the previous quarter and 18.9% more than 1Q2021.
The most expensive luxury unit that has been sold this year in terms of absolute value it was a 6,574 sq feet unit at Les Maisons Nassim that was sold for $39 million in May. Based on psf the highest priced unit sold in the year is a $334 sq ft apartment located at Eden which was sold for $6,024 psf during March of this year.
Based on URA restrictions, the top-selling new luxury condos to date so far this year have been Midtown Modern, Irwell Hill Residences, Leedon Green, Fourth Avenue Residence as well as Hyll in Holland.
The sector of landed homes has also had an impressive year in the face of a surge in demand. There were 2,407 transactions in the beginning of the year. This is an 139.7 percentage increase over the same timeframe a year earlier.
The most notable deals thus far include a 32,150 square foot Good Class Bungalow (GCB) on Nassim Road that changed hands for $128.8 million in March. A further 31,795 sq. ft. GCB in Queen Astrid Park was sold for $86 million in July.
In the future, “the supply of luxury homes is scarce in Singapore, especially developments that are of scale and in good locations” Sun says. Sun. Sun also states that the supply of luxury homes is likely to be low because many developers have yet to fill up their property banks.
Should the economic outlook continue to improve in the next few months, it could increase confidence among consumers and increase sales of homes with luxury features. Therefore, prices could be upwards in the next few months, according to Sun.

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