As a more positive mood spread to the higher realm of the private residential market, deals for Singapore luxury apartments picked up in Q2 and Q3 of 2009.
From a low of 15 deals in Q1 of 2009, the figure of apartments priced more than $4 million rapidly increased to 87 in the second quarter and to 210 in the third quarter.
Compared to the 280 transacted apartments for the whole fiscal year of 2008, the total of 312 apartments sold in this price range showed an increase of 11 percent. The CB Richard Ellis (CBRE) analyses caveats information of the Realis system of URA until October 12.
For a price of around $4 million, a total of 1,740 apartments had been sold in 2007, the peak year for the market of luxury houses.
CBRE examined the caveats data of deals for apartments and condos in the Core Central Region, including the financial district; Sentosa Cove and HarbourFront locations; and the prime districts 9, 10 and 11. Both the primary and secondary market transactions, excluding the collective sales are included in the transactions.
According to Residential Executive Director of the firm, Joseph Tan, some investors are confident that this is the most appropriate time to purchase luxury apartments as they rise to net capital profits before the surge of prices removes the segment.
”In addition, with the appreciation of foreign currencies against the Sing dollar in recent months, foreign investors could have found prices of luxury apartments here fairly attractive,” said Mr. Tan.
Mister Tan says that as there will be investors who will be attracted to the forthcoming luxury projects like the Seven Palms Sentosa Cove and Marina Bay Suites, he expects a rise in the high-value transactions. “Buying interest will be project-driven, based on the uniqueness of each project,” added Mr. Tan.
Based on the report of the developers, there is a pick-up sale in the luxury apartments from both foreigners and Singaporeans.
”A lot of foreigners talk to us about buying quality property assets in Singapore. They include high-net-worth (HNW) Indians and Chinese who are thinking of becoming Singapore permanent residents and wish to move their families here,” said David Lawrence, chief executive officer of Wheelock Properties (Singapore).
Michael Ng, managing director of Savills Singapore, says that the Republic has been a recipient of well-off Asians from various places such as India, Malaysia and China. They have come out again to purchase luxury properties with improved confidence that the overall global economy is already moving towards recovery.
”A lot of them see Singapore as a safe place to park their family and money,” Mr. Ng added.