With the re-entry of the extremely wealthy Chinese, Low Keng Huat’s 138-unit freehold condominium Klimt Cairnhill is now open

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Read more: Three levels at Solitaire on Cecil sold for $162.8 million, setting a new high of $4,325 per square foot

Three levels at Solitaire on Cecil sold for $162.8 million, setting a new high of $4,325 per square foot

The luxury real estate market for non-landed homes gained momentum in the 1Q2023 quarter according to a study report from Huttons Asia. Around 84 non-landed luxury homes were sold during the first quarter of 2023. It’s 15.1% higher than the prior quarter. Based on cautions, the total value of luxury homes that were not landed for sale was $740.6 millions, 8.3% higher q-o-q.

The increase that has been seen in the luxury non-landed real estate market may result from the return of wealthy Chinese buyers after China’s relaxed of border restrictions on January 8th, says Huttons Asia.

The return of super-rich Chinese, Klimt Cairnhill -the freehold condominium with 138 units of Low Keng Huat — had 20 units sold to foreign buyers in the first quarter of 2023. “One reason why the Chinese focused their attention at Klimt Cairnhill was the availability of large-format units with that are at least 2,000 square feet,” says Huttons.

The three luxury condo developments that witnessed the most transactions in the first quarter of 2023 include Les Maisons Nassim, Klimt Cairnill and Nassim Park Residences. In Les Maisons Nassim the 6,286 square foot unit was sold to a buyer for $36 million ($5,727 per sq ft). In Klimt Cairnhill, a 5,920 square foot duplex penthouse sold for $27.5 million ($4,645 per sq ft). A 4,822 square foot unit in Nassim Park Residences was purchased to a buyer for $22million ($4,562 per square foot).

In the area of luxury rental markets is concerned, the average monthly rents for luxury homes that are not landed in the 1Q2023 period continued to increase in the range of 11.6% to $15,994. With four and five-bedroom luxury condos having the market with limited supply, rental rates for these homes experienced an increase faster than those with three beds.

In the landed luxury sector, Huttons reports six detached houses located in Good Class Bungalow (GCB) areas were sold during the 1Q2023 period which was worth $133 million. The figure is 38.9% lower q-o-q and 68.6% lower y-o-y. “The more substantial deal of $3 million or more have been slowed down in 1Q2023 as compared to recent two quarters of 2022 due to the uncertainty in the economy,” add Huttons.

The largest deal on a detached house within an GCB area in the 1Q2023 quarter was the purchase to 38 Binjai Park for $28.3 million (or $1,824 per sq ft) with a land size of 15,515 square feet.

In accordance with URA Realis data, the most expensive monthly rent by a GCB in 1Q2023 was one-hundred dollars each month. It was the GCB is located at Queen Astrid Park. It is the second highest rent for the GCB. The record-breaking rent of $200,000 a month is owed to the newly constructed 25,439 square feet GCB located in Queen Astrid Park in June 2022.

With the cooling measures rolling out on April 26th, Huttons notes that the increase in the amount of additional buyer’s tax (ABSD) for foreigners purchasing homes in Singapore property in Singapore between 30% to 60% up to 60% could effect on the market. “This is likely to be Singapore’s highest rate of tax imposed on foreigners worldwide,” the report adds.

The luxury rental market could be more popular as more foreigners are renting during the interim while applying for status as permanent residents or citizens. Huttons also anticipates a rise in demand for Singapore’s Global Investor Programme, which grants permanent residence to qualified global investors who want to steer their investment and business growth through Singapore.

In the case of GCBs, Huttons predicts the market will see a normalized range of 40-50 transactions by 2023. “Sellers are waiting to find their ideal price while buyers wait for their citizenship to be confirmed prior to purchasing the GCB,” adds the report.