Prime property prices may still be far behind the record levels hit during the property boom in 2007, but one project in Orchard Road recently achieved a new record price.
A 2,885-sq-ft unit at Ardmore Park was sold for $10.64 million, or $3,688 psf – a record price for the project.
According to caveats lodged, the previous record for an apartment in the 330-unit freehold project was $10.1 million, or $3,501 psf, achieved in October 2007.
Daphne Tay, a property agent at Sotheby’s International Realty, who part-brokered the deal, said the home with the record-breaking price is on a high floor in a premium tower with an unblocked panoramic view.
The record sum came from a foreign buyer from North Asia. Ms Tay said the sellers were an Indonesian couple who were the original owners of the unit. Both seller and buyer refused to give any comments.
According to property analysts, a record deal was expected, given the growing property fever in the luxury segment of the market.
This year, high-end properties will likely dominate the market, said Mr. Joseph Tan, executive director of residential services at CB Richard Ellis.
“Mass market homes, which drove the property boom last year, have reached their previous peak in terms of price, whereas the luxury market is still 20 per cent below its peak,” he said.
He also noted that overseas buyers, who left in the wake of the financial crisis in 2008, have been returning to the Singapore property market.
Based on caveats lodged, the number of foreign buyers has increased to 2,840 in 2009 from 1,498 in 2008, he said.
Mr Tan added that prime properties in Singapore represent good investment value and are still cheaper compared to rival cities like Hong Kong.
According to a recent report by DTZ, 12 percent of the total purchases of private homes in Q4 2009 were foreigners, up from 10 percent in Q3.
In H2 2009, there was an increase in buyers from Korea, Australia and Britain, said the report.
Prices of high-end properties have been inching up concurrently with the recovery of the global economy.
Late last year, six units at Seven Palms, a luxury development by SC Global in Sentosa Cove, were sold at a record price of $11 million each, or $3,100 psf to $3,400 psf.
Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic, said that although activity in high-end properties will recover this year, prices are not likely to return to their 2007 peak.
“This year is going to be a bit turbulent for the property market, especially after the recent government measures to cool the property market. Buyers should generally be quite cautious,” he said.