Singapore, 19 January 2018 – Private properties sales volume grew in 2017, the best performance in four years.
The year 2017 ended stronger than it started, with a full-year GDP estimate of 3.5 per cent. As Singapore heads into 2018, property owners and investors will do well to have a better understanding of the property outlook in 2018. As part of its continuous efforts to connect with its ultra high net worth clients, List Sotheby’s International Realty, Singapore organised an exclusive session on “Property Market Outlook 2018” on 19 January 2018 at their office at Alexandra Road.
Mr Leong Boon Hoe, Chief Operating Office of List Sotheby’s International Realty, Singapore, said: “As the Singapore economy recovers and stabilises, we expect the property market to continue to grow at a steady rate, and in particular, for the luxury property sector to lead the market. With a strong track record in our first year of operations, List Sotheby’s International Realty, Singapore, is in good stead to walk this journey with our clients as they make their choices to purchase their first or next luxury property.”
During the session, Ms Han Huan Mei, Associate Director, Research, gave an overview of the market performance of 2017 market as well as the outlook for 2018. Summarising her findings, Ms Han said: “There has been an increase in demand in the private property market with sales volume rising for the last three years since its lowest point in 2014. This market recovery is now in its early stages and we expect demand to improve further in 2018, especially for luxury residential properties.”
Private home sales volume spiked in 2017, and even surpassed the number of HDB units sold in the resale market. More importantly, private home prices have turned around in 2017 while HDB resale prices have remained soft.
The luxury apartment market continued to grow in 2017, boosted by the increased volume of luxury apartment units bought by foreigners and permanent residents (PRs). In particular, the number of luxury apartments (above $5 million) bought by foreigners and PRs in the Core Central Region of Singapore more than doubled. The largest group of foreign buyers were Chinese investors, making up for over $300 million in investment value. Indonesian investors were the second biggest buyers, while Malaysian, Indian and American buyers complete the list of the top five foreign investors.
In the sales of all three types of luxury residential properties in Singapore, namely Good Class Bungalows (GCB), Sentosa Cove Bungalows and luxury apartments/penthouses, the market saw new highs in the price per square foot (PSF) especially in the second half of 2017. The price PSF for one Cluny Hill GCB sold in November 2017 reached $2,350.
The market sentiment for private residential properties in 2018 is positive. With more local economies experiencing growth, market observes the global economy to see a stronger growth of 3.1 per cent in 2018.
Developers are expected to continue to acquire sites, with a good number of tenders for collective sale sites as well as sites from government land sales programme closing in January and February 2018. In the Core Central Region alone, there could be up to nine sites offering close to 1,400 units in the first half of 2018.
Experts have also forecast that prices for private residential properties may grow between three to eight per cent in 2018.
On holding the exclusive session for the company’s clients, Mr Leong said: “List Sotheby’s International Realty, Singapore, believes that good market research is key to smart purchases and maximising returns on investments. Besides offering quality service to our clients, we will continue to build relationships with our clients by providing them with timely market data and information to help them make the best purchasing decisions”.
Placing clients and property investors at the center of the business, List Sotheby’s International Realty, Singapore focuses its resources on research and believes that providing clients with relevant and timely information as well as statistics on the market is a value-adding proposition to the discerning investors of today. The company will continue to engage its clients by holding regular events for them and will also keep them updated on the latest market news through various communication channels.
Luxury residential brokerage List Sotheby’s International Realty opened its Southeast Asia headquarters in Singapore on 27 March 2017 to capitalise on Singapore’s position as a global financial hub and the growing number of affluent individuals in the region.
Since then, it has secured significant growth in new appointments in Singapore, which include the $108 million Wallich Residence Super Penthouse, a $21 million Sentosa Cove bungalow, and a $13 million unit in Marina Bay Residences. Significant regional listings include Sansiri’s 98 Wireless, which is the most expensive luxury freehold condominium in Bangkok, and UEM Sunrise Berhad’s upcoming Mayfair apartments in Melbourne, which were designed by the renowned and the late architect Zaha Hadid.
The group plans to open new offices in Bangkok and Jakarta this year, and in Ho Chi Minh City by the following year, which will widen and strengthen the existing List Sotheby’s International Realty network, offering clients reach and access into these fast growing markets. Other than its office in Singapore, it currently has nine offices in Japan, two in Hawaii, one in Hong Kong and one in the Philippines.