Ultra-luxury condominium Les Maisons Nassim units sold for the 4 most expensive transactions in H2 2022, with values ranging from S$5,296 to S$6,057 per square foot (PSF) between S$36 million and S$68 million.
After that, a 4,951-square-foot freehold condo at Tomlinson Heights sold for S$23 million.
In total, 296 luxury non-landed homes were sold in 2022, down from 487 transactions in 2021 by over 40%.
A decline in the residential property prices
According to the head of prime residential sales and international project marketing at Knight Frank Singapore, the previous low-interest rate environment encouraged buyers to make their purchases sooner rather than later. However, the current high-interest rates have now discouraged buyers.
Residential property prices totaled just S$2.5 billion in the second half of 2022, decreasing 20.3% from the S$3.1 billion in the first half. In addition, volume decreased from the 421 transactions in H2 2021 by nearly 23% annually.
Good Class Bungalows (GCB), the market leader, witnessed 10 deals in H2 2022. It increased the overall number of GCB transactions for the year to 20, which is only a third of the 60 transactions expected in 2021.
In the meantime, the average residential property price for GCBs increased by 27.1% to S$2,108 per square foot in H2 2022 from $1,658 in H1 2022.
A 27,000-square-foot bungalow in the Belmont Park GCB Area sold for S$55.5 million, making it the most expensive transaction in H2 2022. It has been less than three years since the last sale in the region, and this one is at a unit land price that is 60.9% more expensive than the one from October 2019.
Predictions for future residential property price
It is predicted that price increases in the prime landed market will be “moderately” lower in 2023 than the predicted 9.5 percent recorded for 2022. According to the government’s Tuesday-released flash estimates, private home prices increased 8.4% overall in 2017.
I am Tyson Yuk, the founder of the blog Commercial Realty Singapore. With over 15 years of experience, my forte is in the commercial and luxury property line. With my blog, I aim to educate, advise and share tips and tricks with potential property buyers and investors to help them make successful property ventures.
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