Category: Research

The Q3 2017 URA private residential price index finally showed a positive q-o-q change of 0.7% after 15 consecutive quarters of decline. Developers reportedly sold 2,663 new homes in Q3 2017. The secondary market also registered 4,030 sales, 5% more than the 3,828 homes sold in the previous quarter. Notable sales included a 10,300-sq ft penthouse on the 35th/36th levels of Sculptura Ardmore which was sold at $60.00 mil/ $5,825 psf, and a 7,287-sq ft penthouse on the 23rd level of Gramercy Park, sold for $21.86 mil/ $3,000 psf.

Are we out of the woods yet?

Sentiments in the residential market remained fairly positive in Q2 2017. The URA residential price index for Q2 2017 continued to descend for the 15th consecutive quarter but registered the smallest q-o-q decline of 0.1%. While this is the longest downcycle for the residential property market, its magnitude of correction is the smallest at 11.6%.

A total of 3,077 new homes were sold in Q2 2017, higher than the 2,962 units sold in Q1 2017. Likewise, the improving sales volume was also seen in the secondary market with 3,828 units sold in Q2 2017, 71% higher than the 2,240 units sold in Q1 2017. Within the prime sector, the developments which sold the most units in H1 2017 were Leedon Residence, Gramercy Park and Ardmore Three. There was a 27% y-o-y increase in the number of permanent residents and foreigners who bought homes in Core Central Region. Buyers from China and Malaysia were the top two groups of investors.

Is the residential market about to see light soon?

Besides luxury apartments, Good Class Bungalows (GCBs) and the bungalows in Sentosa Cove are the trophy assets of the rich and well-heeled in Singapore. What are Good Class Bungalows and what makes them so appealing? How different are the bungalows in Sentosa Cove from GCBs? Following some three years of tepid sales and declining prices, List Sotheby’s International Realty, Singapore observed that buying interest in GCBs and Sentosa Cove bungalows had improved in the first half of 2017.

What is the implication of this on the wider market? Is the return of interest to the luxury market in H1 2017 a precursor to the recovery of the Singapore residential market after 15 quarters of price decline and low sales volume?

Sotheby’s International Realty Affiliates LLC is proud to present “Global Affluence: The Emerging Luxury Consumer,” a report examining the confidence, spending habits and purchasing interests of emerging luxury consumers from around the…