Luxury home sales in central Singapore reach 10-year high in second quarter 2021
The central core region covers Bukit Timah, Holland, Sentosa, Newton Road, Orchard Road and urban areas.
Based on data from the Urban Redevelopment Authority (URA), private home sales in the central central region jumped 25% quarter-on-quarter to 1,930. OrangeTee said that was the level the highest since the fourth quarter of 2010, when 2,014 units were relocated.
Sales of private homes in the central core region also increased 4.5 times year-on-year, compared to the second quarter of 2020, when strict circuit breaker measures were in place.
ERA Realty’s head of research and advice, Nicholas Mak, attributed the large number of luxury home sales to the high number of units listed in the second quarter of 2021.
There were 1,019 new units launched for sale in the central central region in the second quarter of 2021, one of the highest since the fourth quarter of 2013, when 1,093 units went on sale, he said. declared.
Other analysts attributed the surge in demand to the presence of wealthy people wishing to invest in real estate here as well as the city-state’s high vaccination rates, which helped boost consumer confidence.
OrangeTee noted that Singapore’s real estate market is attractive to investors due to its relatively low property taxes compared to other countries.
Expats also see Singapore as a culturally vibrant and liveable country, which is an incentive for them to invest here.
New home sales in the Central Central region hit an 11-year quarterly high with 813 units sold in the second quarter of 2021, while resales hit a 12-year quarterly high with 1,109 units traded.
On a psf basis, 337 luxury condominiums changed hands at S $ 3,000 psf, while 45 units traded for over S $ 4,000 psf, excluding wholesale purchases.
A 611 mÂ² apartment at Nassim Houses along Nassim Road has established itself as the most expensive luxury sale in terms of price. The apartment was sold for S $ 39 million in May.
The real estate housing segment has also seen an increase in demand, with 2,407 properties sold across the island in the first eight months of 2021, a 140% increase over the same period last year.
In the first eight months of 2021, more than 50 Good Class Bungalows (GCBs) have been sold, with one of these properties on Nassim Road for S $ 128.8 million in March.
The number of luxury homes sold during that same eight-month period stood at 3,883, exceeding the annual sales posted in 2018, 2019 and 2020.
The best-selling new luxury condominiums this year include Midtown Modern, Irwell Hill Residences, Leedon Green, Fourth Avenue Residence and Hyll on Holland.
Looking ahead, OrangeTee expects demand for luxury homes to increase as the city-state opens its borders and more foreign investors return.
Huttons Asia CEO Mark Yip expects Singapore’s luxury real estate market to be boosted through 2022, along with a strong recovery in the global economy.
He noted that investors will be drawn to the city-state due to its high vaccination rate as well as its stable political environment.