Singaporeans are snapping up larger condos, more landed properties
According to a report by property firm OrangeTee, home buyers have been snapping up bigger homes in recent months, as the sale of luxury homes in Singapore’s core central region hit a 10-year high.
Against a backdrop of wealth creation in Singapore, luxury home sales in the country has hit a 10-year high in the second quarter of 2021, according to a report released by property firm OrangeTee.
Data from the Urban Redevelopment Authority (URA) showed that private home sales in the Core Central Region (CCR) jumped by almost 25 per cent quarter-on-quarter to 1,930 transactions in Q2 2021, the strongest quarter since Q4 2010 when 2,014 units were transacted.
New home sales in the CCR also hit an 11-year quarterly high with 813 transactions last quarter, while resales rose to a 12-year high with 1,109 transactions.
In the first three quarters of this year, 339 condominiums were sold with price tags in excess of S$5 million each. Of this number, 74 cost over S$10 million. The priciest luxury sale in terms of price quantum was a 611 sqm sprawling apartment at Les Maisons Nassim, sold for S$39 million in May this year.
On a per square foot (psf) basis, 337 luxury condominiums were sold for S$3,000 psf and 45 were above S$4,000 psf. The most expensive transaction was a 282 sq m resale condominium at Eden along Draycott Park, which changed hands for S$6,024 psf in March.
DEMAND FOR BIGGER HOMES
For home buyers, bigger is proving to be better. In recent months, buyers have been snapping up larger luxury condominiums. For instance, 42.1 per cent of condominium purchases in the CCR were at least 1,200 sq ft in Q3 2021, up from the 37.4 per cent in Q2 and 31.8 per cent in Q1.
Similarly, demand for very large-sized luxury condominiums that are at least 1,600 sq ft rose to 24.1 per cent in Q3 2021, up from the 22.1 per cent in Q2 and 18 per cent in Q1. This indicates that there are more and more deep pocketed investors in the market with the means to buy bigger and pricier luxury homes, the report stated.
The landed housing segment has also seen a surge in demand, with 2,413 properties transacted island wide in the first eight months of this year, a 139.9 per cent increase from the same period a year ago.
In the first eight months of this year, more than 68 good class bungalows (GCBs) were transacted. Blockbuster deals include the sale of a 2,988 sq m GCB at Nassim Road for S$128.8 million in March, and the sale of a 2,955 sq m unit at Queen Astrid Park for S$86 million in July.
The real estate market in Singapore is attractive due to its relatively low estate taxes compared to other countries, OrangeTee said in the report.
With borders reopening, more foreign investors will return. The luxury market may benefit when wealthy buyers continue to emerge in Asia and more people disperse their wealth and assets overseas.
OrangeTee predicts that the sale of luxury homes will continue to increase, with prices likely to trend higher in the coming months. With Singapore’s economy expected to rebound strongly this year, consumer confidence is likely to pick up further, the property firm said.