Luxury home sales drop this year

December 7th, 2011 at 8:28 pm

The number of transactions in Singapore’s luxury residential market, including bungalows in Sentosa Cove and upmarket condos/apartments in choice districts, has dropped this year, according to Savills.

However, it noted that shares of non-PR foreigners have surged in both categories of properties. The consultancy’s analysis showed that in the first 11 months of 2011, 1,285 caveats were lodged for condos and apartments in Districts 1, 4, 9, 10 and 11, with an average price of at least S$2,000 psf of strata area, down 33 percent from the same period last year.

Meanwhile, shares of non-PRs for non-landed homes in these five districts priced at more than S$1,951 psf rose 37.8 percent, from 28.4 percent a year ago. Savills’ analysis, which was based on URA’s Realis caveats data as of 30 November 2011, also showed that of the total number of transactions by foreigners (both PRs and non-PRs), Indonesians were the top buyers since 2007. Caveats lodged showed that their shares edged up 16.4 percent during the January – November period, up from 15.4 percent for the whole of 2010.

Shares of mainland Chinese, on the other hand, more than doubled from 5.8 percent in 2010 to 11.8 percent during the January – November 2011 period. Indian nationals, who were not even among the top five nationalities of foreign buyers in 2007, were the fourth largest foreign buyers of luxury homes between January – November 2011, bringing in a 2.2 percent share of total purchases.

Steven Ming, Executive Director of Savills Prestige Homes, expects the sales activity in Singapore’s high-end residential market to remain subdued in the next few quarters.

“But the market should continue to attract regional and global high net worth clientele interest, as they look for safe havens to store their wealth. Singapore is one of the two AAA-rated countries in Asia,” he noted. Related Stories:URA launches white site at Thomson Road/Irrawaddy Road URA, HDB launch 3 residential sites for sale Private resale home prices flat in October