22 luxury apartments at Draycott Eight were sold to an Indonesian family for $168 million

Luxury residential sales that were not landed reached $1.1 billion during the first half of the year, falling in 43.7% from the second period of the year According to an Knight Frank report released today (July 12).

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The first quarter of the year saw an eerily low in the range of 50.6% q-o-q in prime non-landed residential sales because of additional stamp duty increases for foreign buyers, which were introduced in December of last year. For the 2nd quarter the sales of prime non-landed residential homes improved in 29.4% q-o-q as business optimism increased and investors began to look towards Singapore as a secure haven amid the global uncertainty.

“Nevertheless there was a shortage of inventory that could be sold in the family-sized units continued hinder selling,” says Nicholas Keong the head of private office in Knight Frank. “Foreign buyers’ interests included the sale of 22 high-end apartment units located in Draycott Eight to an Indonesian family, with an estimated 168 million dollars.”

The top quantum sales continued to be a result of new projects such as Les Maisons, which was among the top three most lucrative transactions of value in 1H2022. The prices for units ranged from $4953 to $5,461 per square foot (or $34.6 million – $59.8 millions). The fourth most expensive transaction value in 1H2022 was an Resales property located at Nassim. Nassim that was sold at $20 million, which indicates “demand for large luxury units with impeccable ready-to-move-in state” Keong says. Keong.

Keong expects the demand for luxury non-landed residences, including furnished larger units that are ready for immediate occupancy. This will remain high in 2022 when international travel resumes at pre-pandemic rates.

Based on URA statistics, prices for land-based homes increased in the second quarter of 2.9%, bringing the increase up to 7.3% for 1H2022. The increase in half-yearly terms was more than 6.3% in 1H2021, regardless of the cooling measures that were implemented in December of last year.

“Transaction value for homes that were landed was $2.9 billion during 1H2022, which is a 46.9% decline from $5.4 billion during the 2H2021 period.” says the Knight Frank report.

The inconsistency between expectations of sellers and buyers and the rises in the cost of landed homes which led to slow sales in the 1H2022 period as explained by Keong. The average unit price increased to 14.5% over the past two years while the pandemic increased the demand for larger living areas.

The lackluster sales within the Good Class Bungalow (GCB) segment continued to decline from the previous year, dipping in 1H2022 by 55.3% in 1H2022 from 2H2021, due to lower economic conditions and the sellers’ resistance to price, who were unable to lower prices to meet expectations. However, top sites with appealing plot sizes were being purchased. Recently an GCB that had a land area of 34,216 sq feet located on 42 Chancery Lane was bought by the daughter-in-law of Filipino businessman Andrew Tan for $66.1 million according to Keong.

Keong anticipates that the pace of transactions will slow due to a weaker global outlook. Landed property prices rising 10% for 2022.