Tag Archives: luxury properties

Good time to buy luxury property: analysts

With luxury home prices in Singapore continuing to fall, now could be a good time for home buyers to make a big ticket purchase. Here’s what analysts have to say.

According to Alice Tan, Research Head at Knight Frank’s Singapore office, the prime segment of the property market has been significantly affected by the government’s slew of cooling measures.

“The 15 percent Additional Buyer’s Stamp Duty (on top of the 3 percent stamp duty) imposed on foreign home buyers – who form a significant proportion of the luxury home buyers’ market, has led to transactions falling by more than half, and therefore affected prices,” Tan said in a recent interview.

She was quoted saying in a media report that luxury properties located in the Core Central Region (CCR) have seen five consecutive quarters of price declines. And analysts expect prices in this segment to continue dipping in the fourth quarter.

A Colliers International report stated the average capital values of luxury and super-luxury apartments softened for the fourth consecutive quarter in H2 2014. Prices dipped 1.1 percent quarter-on-quarter in Q2 2014 to average $2,639 psf by the end of June 2014.

This may not be good news for property sellers and investors, but for buyers who have been planning to acquire a luxury property, there is now a window of opportunity to purchase a dream home.

Meanwhile, Barclays noted that sales in the CCR surged by 91 percent in July after developers cut prices by as much as 20 percent.

“In particular, The Vermont on Cairnhill managed to clear its remaining 37 units after cutting prices by some 12 percent from $2,400 psf to $2,113 psf. Hallmark Residences, off Bukit Timah Road, sold three units in July and sold 63 percent of its 75 units after bringing down selling prices by 14 to 20 percent from its initial launch price of $2,200 psf,” noted the report.

Aside from the drop in property prices, analysts say there will be more good pickings for long-term rental income, capital downside protection as well as capital gain potential within the CCR.

Sharing his thoughts on areas that property seekers should look at, Thomas Tan, Director of RE/MAX Singapore said, “There are an increasing number of unsold units among the new developer launches, which will continue to put a downward pressure on prices in Q4 2014 and early 2015. But that said, properties in the CCR still remain a good asset class for investors because of its location and prestige that comes with it (especially districts 9 and 10), so even when the market takes a downturn, it is still able to hold its ground.”

But buyers should still do their homework before putting cash down on a property.

“While the falling prices do present a great opportunity for new home buyers, as well as existing home buyers looking to upgrade, or even as a long-term investment, a property purchase is a large investment outlay and buyers should do their own due diligence first before entering the market,” noted Lee Lay Keng, Director and Regional Head (SEA) of Research, DTZ.


Top 5 Asian properties above US$20 million

As Asia continues to enjoy investment from wealthy buyers around the globe, many developers are keen to cash in on the action with exclusively priced properties aimed at the world’s super rich. Some of these properties come with price tags that many of us can only imagine. Still, it’s nice to dream, so below is a list of 5 of the top Asian properties on the market right now that are priced in the region of US$20 million and above.


The Troika, KLCC, Kuala Lumpur, Malaysia

The Troika is one of the most prestigious and preferred addresses in Kuala Lumpur. This super-luxury penthouse complex offers magnificent views of the Kuala Lumpur skyline from the penthouses’ balconies. Each tenant has exclusive access to the complex’s swimming pool and leisure facilities, as well as the benefits of private parking and 24 hour security. The mixed development project, is undertaken by established property developer BRDB and designed by world-renowned architectural firm Foster & Partners. There is a combined total of 231 units that comprise the Troika, and now five floors of penthouses are available for a bulk purchase of RM75 million (US$23.5 million).


Overbays, Repulse Bay Road, Island South, Hong Kong

The Overbays development consists of 7 luxurious townhouses positioned at the enviably scenic location of Deep Water Bay. Each property comprises four bedrooms, two of which are ensuite, separate living & dining room, and a large terrace which opens up to spectacular panoramic sea views across the bay. Every one of the properties is spread over 5,051 sqft with an additional 1,000 sqft of private garden, with access to parking, tennis courts and a swimming pool. Completed in 1982, at least one of the Overbays properties is now on sale at an asking price of HKD600 million (US$77.3 million).


B Block, Westend National Capital Region, South Delhi, India

The Westend National Capital Region of South Delhi has some of the most expensively priced properties in India, including the exclusive B Block area. For the right buyer, there is currently the opportunity to purchase an extravagant independent freehold house in the area. The house covers an area of 7,200 sqft and comprises of eight bedrooms, eight bathrooms and two reception rooms. The property features a car park and 24 hour security, as well as a balcony offering views out over the city. The house is currently valued at INR1 billion (just under US$20 million).


Third Avenue, District 10, Singapore

One of Singapore’s most desired freehold addresses, Third Avenue is an oasis of tranquility ensconced in the exclusive District 10. Built for the discerning individual, it is the epitome of stylish living where the splendor of open space is celebrated. This secluded neighbourhood is surrounded by beautiful greenery and lush foliage.
This 8,000 sqft house has five bedrooms and bathrooms distributed in the upper floor, ground floor and basement . An outdoor kitchen complete with cooker and BBQ pits overseeing the pool allows residents to immerse themselves in the bucolic environment. The property is currently listed at SGD28 million (US$22 million).


Shouson Hill, Island South, Hong Kong

The Shouson Hill area is one of the most sought out locations for luxury properties in Hong Kong, and its not hard to see why with townhouses like this one on Shouson Hill Road. The three storey property boasts an efficient high standing layout, maximising space to accommodate the four bedrooms and four bathrooms in the property. The house is spread over 4,258 sqft and has a private swimming pool, garden, backyard, and roof terrace which looks out to provide excellent sea views. Completed in 1980, this property is now on the market once more at a price of HKD350 million (US$45.1 million).

Photo credit: Knight Frank

Source: PropertyReport – 2012 Jul 13