New research from Knight Frank shows that demand for luxury homes in Singapore is steadily growing amidst rising wealth in the country. In the first half of 2021, sales from luxury home transactions reached S$7.5 billion.
In the first half of 2021, total sales of prime non-landed residential properties reached S$2 billion, the highest since the second half of 2010 when the luxury market’s total sales were approximately S$2.4 billion. Rebounding from last year’s economic recession caused by the COVID-19 pandemic, sales in the first half of 2021 were double the S$1 billion recorded in the second half of 2020 and surpassed the S$1.7 billion transacted for the entire year of 2020.
Notable prime non-landed residential transactions in the first half of 2021 include Swire Properties’ sale of all units at Eden for S$293 million, at an average of S$4,827 per square foot. This indicates a rising demand from buyers for large non-landed homes in prime locations.
Other high-profile transactions among prime non-landed residences include the luxury development Les Maisons Nassim (transacted at S$39 million; averaging S$5,930 psf) and Park Nova (transacted at S$34.4 million; averaging S$5,838 psf).
Meanwhile, the total sales volume of landed residential properties reached S$4.3 billion. The research report notes that demand primarily came from HDB upgraders looking to move into larger homes, as well as an active and robust private resale market where owners sold their private homes at higher prices, partly driven by newly affluent individuals from the tech, pharmaceutical, and finance industries.
This led to a booming Good Class Bungalow (GCB) market, with 37 transactions amounting to S$1.2 billion. Recent headline deals include the S$36 million property purchased by Secretlab co-founder Ian Ang on Olive Road, and the S$40 million property bought by the wife of Grab CEO Anthony Tan in the Bin Tong Park area.
In March, Jin Xiao Qun, the wife of Nanofilm Technologies founder Dr. Shi Xu, purchased a property on Nassim Road for S$128.8 million.
As an asset class, Good Class Bungalows continue to be sought after by a growing number of ultra-high-net-worth Singaporeans and foreigners. Knight Frank expects the landed residential market to see “sustained interest and buying momentum” for the rest of the year, with prices trending upwards, driven by GCB sales.
Knight Frank stated that as pandemic-driven entrepreneurship and transformation create new wealth and new luxury home buyers, the GCB market is expected to enter a period of revival in the next 12 months.
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