Due to the absence of new luxury condominiums project debuts in 2022, there were fewer penthouse deals than in 2021.
Les Maisons Nassim and Park Nova penthouses combined for four of the top 10 condo deals by price per square foot in 2021. The three super penthouses in CanningHill Piers, Eden, and Klimt Cairnhill, respectively, made up the final three of the top 10 deals in 2021.
The reason behind the falling prices of luxury condominiums
The top 10 luxury condominiums transactions in 2022 had an average per square-foot price that was 6.7% less than what was attained in 2021. According to List Sotheby’s Han, this is due to the more expensive new luxury condominium developments introduced last year.
Recognizing the need for large units, some developers are willing to sell some of their larger apartments to buyers who intend to live in the same condo close to each other.
In July of this year, developer GuocoLand introduced the Sky Bungalow Collection at the 558-unit Midtown Modern and the 54-unit Park Nova, both owned by Shun Tak Holdings.
In the Core Central Region’s downtown region, several mixed-use projects featuring luxury condominiums are expected to open in 2023.
One is the 200-unit 8 Shenton Way, which will soon become Singapore’s tallest skyscraper.
The 686-unit Marina View condo by IOI Properties is scheduled to open. It is situated on a white site at Marina View that IOI acquired in September 2021 at a government land sale for $1.508 billion. There will be a hotel in the upcoming mixed-use complex.
Homebuyers preferring buying rather than renting
According to SRI’s managing partner and co-founder, more Chinese homebuyers are now active in the upscale housing market in Singapore. Some foreigners and PRs who previously rented homes feel that it is now preferable to buy a home rather than continue to rent because housing costs have skyrocketed.
External investors may cut their investments due to rising threats of a global recession, consistently high-interest rates, and the ongoing conflict between Russia and Ukraine.
However, the Singaporean government’s cooling measures have proven to be a useful stopgap against over-leveraging.
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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