Singapore’s luxury property market witnessed some stirrings in 1H 2015 as buying interest picked up, according to the latest report from CBRE Research.
During the period, 15 Good Class Bungalows (GCB) were sold at an average price of S$1,442 per sq ft, up from the S$1,381 per sq ft achieved in 2H 2014 but lower than 1H 2014’s S$1,488 per sq ft.
CBRE noted that GCB prices managed to remain resilient even as sales volume had taken a beating during the last two years.
“While the cooling measures did not manage to bring a significant price correction, they have helped to curb the exuberance in buying and have prevented investors from over-leveraging themselves in mortgages. This has resulted in a stronger and healthier property market. GCB buyers are generally owner-occupiers or long-term investors with stronger financial muscle,” it added.
CBRE expects prices to hold firm in 2H 2015, with another 10 to 15 GCBs to be sold.
Over in Sentosa Cove, two bungalows were sold in 1H 2015 after recording only three such transactions in the whole of 2014. CBRE attributed the dearth of bungalow sales in the area to the government’s cooling measures like the TDSR framework and ABSD imposed on foreign and local investors.
The bungalows sold had an average price of S$2,011 per sq ft, up 20 percent from last year’s S$1,676 per sq ft.
Given the barriers posed by the property cooling measures and the lack of interest among locals, CBRE expects a drag on the recovery of the bungalow market in Sentosa Cove.
“As such, sellers should lower their price expectations when potential buyers come knocking on their door,” it said.
Meanwhile, the sales volume of apartment worth S$5.00 million and above in the Core Central Region was 45.7 percent higher than 2H 2014’s volume.
This comes as developers ramped up efforts to sell completed projects both locally and overseas.
Average prices of luxury apartments dipped from S$2,650 per sq ft as at end-2014 to S$2,600 per sq ft in 1H 2015.
Looking ahead, CBRE expects property developers with unsold inventory to actively market their units.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
