Prime Non Landed Residential Sales Pick 1H2024 Market Remains Uncertain Knight Frank

There has been a significant surge in sales value for prime non-landed homes in the first half of 2024, according to Knight Frank’s 1H2024 prime non-landed residential report, with a 28.2% increase from $574.7 million in 2H2023 to $736.7 million. This is in line with a rise in luxury condo transaction volume from 72 to 98 deals during the same period. The main driving force behind this increase in transactions is the demand for family-sized, move-in-ready units for personal use, says Nicholas Keong, the head of residential and private office at Knight Frank.

Residents of Norwood Grand Champions Way can take advantage of the excellent public transport services in Woodlands, which are known for their efficiency. The Woodlands South MRT station, which is just a short walk away, provides convenient access for residents. This station is part of the Thomson-East Coast Line (TEL), a major MRT line that will soon connect directly to the city center and various business districts. With its convenient location near the MRT station and easy access to public transportation, Norwood Grand at Champions Way is an ideal choice for those who appreciate efficient and convenient travel options.

However, the high additional buyer’s stamp duty rates have caused a decline in demand from foreign buyers, resulting in two consecutive half-yearly periods where total sales value was lower than $1 billion. The lack of foreign buyers has also contributed to prices plateauing, with average prime non-landed home prices showing a marginal growth of only 0.9% from $2,319 psf in 2H2023 to $2,339 psf in 1H2024. This is a significant difference from the average price of $2,652 psf in 1H2023, showing a decline of 10.9%.

The top transaction for prime non-landed homes in 1H2024 was the sale of a penthouse at Skywaters Residences at 1 Prince Edward Road in Tanjong Pagar. The 7,761 sq ft penthouse on the 57th floor was sold for $47.3 million, or approximately $6,100 psf. It was purchased by an undisclosed foreign buyer, according to the lodged caveats. In the same period, there were two other notable transactions, both of which were new sales at 32 Gilstead and The Ritz-Carlton Residences Singapore Cairnhill, with prices ranging from $14.5 million to $16.5 million.

According to Keong, muted demand from foreign buyers is expected to continue affecting the luxury condo market. At the same time, local buyers are also becoming more selective in their search for luxury homes. As a result, sellers in the secondary market may need to lower their price expectations to align with the current market situation. Keong forecasts a slight increase in prime non-landed home prices for the whole year, ranging from -1% to 2%.