Slower sales, but prices of prime homes still up in 1H2023: Knight Frank
($1.1 billion in 1H2023 sales marked a 23% decline for luxury non-landed homes, according to a Knight Frank research report. Despite this drop in sales volume, the average unit price of prime non-landed homes saw a slight increase of 4.6% to $2,580 psf.
The largest drop in transactions was seen in District 4, with 48 homes being sold in the first half of the year. It is believed that this was due to the introduction of new cooling measures on April 27, doubling the additional buyer’s stamp duty for foreigners.
Demand for uncompleted homes was still evident, with Les Maisons Nassim seeing the top two luxury non-landed residential transactions in 1H2023. An 8,633 sq ft unit at Les Maisons Nassim fetched $45 million ($5,213 psf) in May, while a 6,286 sq ft unit was sold for $36 million ($5,727 psf) in February.
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On the opposite end, the landed residential market showed slightly different signs of growth. Flash estimates by URA reported prices of landed homes rose 0.1% q-o-q in 2Q2023, raising the total increase in landed home prices to 6%. 257 landed homes were sold, amounting to a total transaction value of $2.7 billion.
In the GCB segment, total transaction value rose 2.4% to $424.3 million in 1H2023, with a fall in the number of homes transacted from 10 GCBs in 2H2023 to 8 GCBs in 1H2023. Unit land prices rose from $2,108 psf to $2,952 psf, making it a new land price benchmark.
Knight Frank states that for prime-non landed homes, foreign homebuyer participation will be significantly lower after the cooling measures, as well as some sellers withdrawing their properties from the market. For the landed segment, prices are expected to continue growing in “a steady fashion” in 2H2023, due to the abundance of buyers in the market.