Tag Archives: Luxury real estate

Non-landed luxury home prices remain stable

Posted on 26 May 2011 | Comments Off on Non-landed luxury home prices remain stable

Savills Singapore has reported that the prices of non-landed luxury homes it monitored remained steady in the first quarter of the year.

Savills’ data showed that the average price of non-landed luxury private homes remained steady at S$2,269 psf in the first quarter, rising marginally by 0.5 percent quarter-on-quarter from S$2,258 psf in the last quarter of 2010.

The average price of “super luxury” residences also increased marginally by one percent quarter-on-quarter to S$3,417 psf in the first quarter, from S$3,383 psf in the previous quarter.

Thus, the price gap between the Q4 2007 peak and current prices is gradually narrowing, with high-end and super luxury residential prices now only 5.9 percent and 7.2 percent under their peak levels.

Savills anticipates sustained interest in luxury homes in the longer term, as the land supply within this market sector is limited.

“Well-located luxury homes with good product offerings may continue to command premium prices,” Savills said in a report.

“More overseas investors may also divert their investments here, as the strong Singapore dollar can help them hedge against any fluctuations in the global exchange rate.”

In the rental market, the average monthly rent of luxury non-landed residential properties monitored by Savills continued to increase for five consecutive quarters to S$5.43 psf in Q1 2011. However, the growth moderated to just 0.7 percent quarter-on-quarter.

Located in prime districts, most projects completed in the first quarter will exert some short-term pressure on prime rents going forward. But rents are anticipated to stay firm for super luxury homes and good class bungalows as supply is limited.

“Although rents for some high-end private homes may face short-term pressure from the new completions, the limited supply of land for this market segment in the long term could still see rents of good class bungalows and super luxury homes holding firm in the next few quarters,” Savills Singapore said.

Source : PropertyGuru – 26 May 2011

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High-end homes may see build-up in sales

Posted on 19 May 2011 | Comments Off on High-end homes may see build-up in sales

Demand in luxury homes seems to be creeping back, if last month’s new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.

A four-bedroom unit at SC Global’s The Marq on Paterson Hill recently sold at $17.5m, a record-breaking $5,842 psf – surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007.

A total of 15 non-landed homes priced at $3,000 psf and above were sold in April – the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.

These included properties in Scotts Square, Alba, The Orange Grove and Tomlinson Heights.

Market experts say these sales might provide early signs of a comeback by high-end homes, where prices have struggled to recover to levels recorded during the boom in 2007.

The high-end segment must be monitored closely for the next few months before any trend can be firmly established, they add.

Kim Eng said in an analyst report that only three ultra-luxury projects – The Ritz-Carlton Residences, The Orchard Residences and The Marq on Paterson Hill – have achieved unit prices of more than $5,000 psf.

‘The latest above $5,000 psf transaction will certainly get the attention of high-end developers that are currently holding back on new project launches,’ the report added.

‘It might well be the tip of the iceberg, as we could see more sales breaking above the $5,000 psf mark.’

Cushman & Wakefield Singapore vice-chairman Donald Han noted that while he is confident that the high-end segment will do ‘fairly well’ for the rest of the year, not all projects can expect to set new benchmark prices.

The record price is likely an exception and limited to certain units and specific developments, he added.

‘But Singapore continues to be a sweet spot for investors with its robust economy and political stability… These factors look good to foreigners who contribute to the high-end activity here, making up 60 to 65 per cent of the segment above $3,000 psf,’ he added.

Experts also noted that some of the posh apartments sold last month – such as at Nassim Park Residences, The Orchard Residences and The Orange Grove – are already completed.

This could have encouraged sales since buyers of expensive apartments might prefer seeing the finished product before making a purchase decision.

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