Market Watch

ACTIVITY IN LUXURY HOMES MARKET MODERATED IN 2022 Prices of luxury homes held firm in 2022 notwithstanding a lower sales volume compared with 2021. A total of 514 luxury deals were contracted in 2022, down 24% compared to the 677 deals in 2021. In terms of investment value, 2022’s quantum of $5.185 billion was 35% lower than the $7.932 billion achieved in 2021.   Based on caveat data provided by URA, the 514 deals in 2022 comprised 44 Good Class bungalows (GCBs), 18 bungalows at Sentosa Cove and 452 luxury apartments in the Core Central Region (CCR). Back in 2021, there we...

At Alexandra Technopark (ATP) on Alexandra Road, Google Asia Pacific signed on as a new tenant in June 2019. It is already midway through the five-year lease term that started in 1Q2020. The space was fitted-out, but Google staff has not moved in. When contacted, Google says it has no new updates to share on the status for now. Google took up the space at ATP 31⁄2 years ago for future expansion, as the firm’s Asia Pacific headquarters at the neighbouring Mapletree Business City II (MBC II) was full. The 344,000 sq ft that Google leased at ATP amounts to 33% of the total net lettable area (NLA)...

Government intervened to rein in price hikes Advanced estimates showed that the Singapore economy grew at 4.4% in 2022Q3 in the midst of rising inflation and interest rates and geopolitical tensions. A technical recession was averted as the economy grew 1.5% quarter on quarter (q-o-q) on a seasonally adjusted basis, a turnaround from the 0.2% contraction in 2022Q2.  The private residential market also showed resilience despite the headwinds, with decent sales in the new and resale segments. The consistent housing demand supported a 3.8% q-o-q rise in the private residential pr...

Aspiring HDB resale flat buyers scramble to make new plans after property cooling measures were introduced on 30th September 2022 Initially, it was shocking, then a mad scramble to make new plans. Some aspiring Housing Board resale flat buyers downgrading from private properties are abandoning their plans altogether, after a new slew of property curbs aimed at cooling the public housing market kicked in on 30th September 2022. Others, especially those who have already sold their private properties but have yet to purchase an HDB resale flat, are biting the bullet to rent an int...

List Sotheby’s International Realty Singapore contributed the above research piece to Business Times Property October 2022 Issue, published on Oct 6, 2022.

The number of new private homes sold in August slid to nearly half the number sold a month ago as developers held back launches during the Hungry Ghosts’ month – when sales activities slowed down.  Developers sold a total of 437 units, compared to 834 units sold in July 2022, according to data released by the Urban Redevelopment Authority (URA) on Thursday (Sep 15). The tepid sales was largely because developers launched only 134 units for sale, down from the 402 units launched the month before. The Core Central Region (CCR) saw 220 units sold while the Rest of Central...

Key projects drove sales volume and prices Following a subdued first quarter with only 613 new homes launched, developers launched 1,956 new homes for sale in the second quarter. Market sentiments improved as the economy opened up from 26 April onwards followed by relaxation of cross border travels. Two new launches, Piccadilly Grand and Liv @ MB, saw take-up rates of over 70% on the first weekend of launch and became market movers. A total of 2,397 new homes were sold in 2022Q2, 31% higher than the 1,825 units sold in 2022Q1. The stronger sales volume also pushed the price index...

Singapore Luxury Homes 2022H1 SLOWDOWN IN LUXURY HOME SALES A lower number of luxury homes were sold in 2022H1 compared to 2021H2 as sticky inflation, interest rates hikes, recession risks and uncertainties from geopolitical fronts dampened investors’ confidence. Caveat data shows that all three luxury segments were affected: Good Class bungalows (GCBs), bungalows at Sentosa Cove and luxury apartments in the Core Central Region (CCR). In 2022H1, there were 28 bungalow deals in the GCB areas, down from 35 deals in 2021H2 and 55 deals in 2021H1. Over at Sentosa Cov...

Home prices resilient despite lower sales The residential market had a slow start in 2022Q1 with minimum new project launches, the lowest new sales volume and the smallest rise in prices since 2020Q2. Only 613 new homes were launched and 1,825 new homes were sold, much lower than the 2,275 units launched and 3,018 units sold in 2021Q4. The price index edged up by only 0.7% q-o-q, compared to a 5% hike in 2021Q4. Besides the lack of new launches, home buyers were also checked by the introduction of new cooling measures in December 2021. A closer analysis of the price index revea...

Global trends are prompting wealthy buyers across the world to make moves abroad. According to Henley & Partners, a global citizenship and residence advisory firm, when it comes to relocation trends, “all the key metrics of the past are in flux. Corporate tax arbitrage is coming under fire, and a proposed global flat tax will change the pecking order of advantageous jurisdictions for international companies. Then there is remote working, with at least 40% of the global workforce now ‘location independent.’ ” Europe—specifically areas like Portugal, Italy, and France—has seen rising in...