Singapore Property | It is clear that Singapore has deep pocketed buyers in its populace. This year, they are out in force. Not less than 19 luxury apartments with a price tag of more than S$10 million each have been sold. According to Orange Tee property consultancy firm, the Gramercy Park development fetched the highest prices. Gramercy Park is built by City Developments. It had the highest absolute price with one of its sprawling units which went for $3,362 for every square foot of space. This translated to a total of $24.5 million for the unit. City Developments has another new launch, New Futura, which is also selling well.
Nassim Hill is the location with the lion’s share of sales. The Nassim is a freehold property that was developed and completed with 55 units only by CapitaLand. It was completed in the year 2015.
Taking the price per square foot (Psf), the unit that was most expensive among those sold was at the Le Nouvel Ardmore. It is close to Admore Park. There, a unit was bought at $15.66 million. It was valued at a per square foot price tag of $4,098. The Le Nouvel is a Wing Tai development. It has a single penthouse that busted records after selling at $51 million. This was in 2015.
A number of property transactions have gone over the $10 million mark. They include the Holland Road Leedon Residence and Tomlison Heights. At the Leedon Residence, one unit was purchased at $1,761 per square foot. It attracted a total price of $12.342 million. Two units at the Tomlison property fetched $11.7 and $12 million respectively. They both had a little over 4,000 square feet in space.
(Artist's Impression of Leedon Residence)
You will want to note very importantly that prices are not setting records this year. This is despite the high number of luxury apartments being sold. In the last year alone, there have been higher Psf prices recorded. One unit at the Ardmore Three development in Admore Park was sold last year at a price of $4,439 Psf. The Nassim also had a record high last year with a unit selling at $25.575 million.
At OrangeTee & Tie, Christine Sun who is the head of Research and Consultancy said that they are in expectation of seeing more above-10 million transactions. Ms Christine attributed this to improved economic conditions and better market sentiment.
First, high-net-worth individuals in Singapore are increasing in number. Second, the number of millionaires is also on the rise. A third factor is that Singapore attracts a lot of wealthy foreigners. This is because Singapore has more attractive prices for luxury homes in comparison to other cities such as New York, Hong Kong and Nairobi. These three factors as noted by Ms Christine are what are causing the increase in demand for luxury homes. The healthy environment for both foreigners and locals in Singapore continues drawing affluent buyers.
This year, the Singaporean property market is on an upswing. In the first quarter, the overall price index for private homes rose by 3.1 percent. A number of collective sales have also happened in the year. A strong response has been noted to government tenders for land sale sites. One such tender for a Holland Road commercial and residential site closed with 15 bids.