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19-05-2011, 08:51 AM
May 19, 2011
Luxury homes may see build-up in sales
Last month's strong showing hints at comeback, say experts
By Esther Teo, Property Reporter
INTEREST in luxury homes seems to be creeping back, if April's new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.
A unit at SC Global's The Marq on Paterson Hill recently sold for a record-breaking $5,842 per sq ft (psf) - surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007, media reports said yesterday.
This means the 3,003 sq ft four-bedroom apartment was sold at an absolute price of $17.5 million.
The Business Times reported the unit is on the mid- to upper levels of the 24-storey project, but is not a penthouse unit. The freehold project was completed earlier this year.
Last month, 15 non-landed homes priced at $3,000 psf and above were sold - the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.
These included units in Alba, Scotts Square, The Orange Grove and Tomlinson Heights.
Experts say these sales might provide early signs of a comeback by high-end homes, whose prices have struggled to recover to levels recorded during the boom in 2007.
However, 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.'
However, 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.
Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said luxury homes are often more valuable when completed.
'Buyers are able to see what they are going to get rather than just buying off a plan,' he added.
esthert@sph.com.sg
Luxury homes may see build-up in sales
Last month's strong showing hints at comeback, say experts
By Esther Teo, Property Reporter
INTEREST in luxury homes seems to be creeping back, if April's new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.
A unit at SC Global's The Marq on Paterson Hill recently sold for a record-breaking $5,842 per sq ft (psf) - surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007, media reports said yesterday.
This means the 3,003 sq ft four-bedroom apartment was sold at an absolute price of $17.5 million.
The Business Times reported the unit is on the mid- to upper levels of the 24-storey project, but is not a penthouse unit. The freehold project was completed earlier this year.
Last month, 15 non-landed homes priced at $3,000 psf and above were sold - the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.
These included units in Alba, Scotts Square, The Orange Grove and Tomlinson Heights.
Experts say these sales might provide early signs of a comeback by high-end homes, whose prices have struggled to recover to levels recorded during the boom in 2007.
However, 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.'
However, 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.
Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said luxury homes are often more valuable when completed.
'Buyers are able to see what they are going to get rather than just buying off a plan,' he added.
esthert@sph.com.sg
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