Singapore prime non-landed residential transactions plummet 36% to S$2.5b in 2022

It’s a huge drop from 2021’s nearly S$4b worth of transactions.

According to a Knight Frank report, there were 158 prime non-landed transactions in Singapore in H2 2022, totalling S$1.4 billion. While total sales value increased 18.5% from H1 2022, the cumulative sales in 2022 fell 36.4% to S$2.5 billion against the almost S$4.0 billion recorded in 2021. 

“The low interest rate environment then encouraged buyers to make their purchases sooner-rather-than-later, but the present high interest rates have now checked buyers,” the report said.

Here’s more from Knight Frank: 

Even so, Les Maisons Nassim which launched for sale in May 2021, continued to achieve top dollar in the second half of 2022, with four transactions at unit prices ranging from S$5,296 to S$6,057 psf (S$36.0 to S$68.0 million). 

A total of 296 luxury non-landed homes were sold in 2022, substantially lower than the 487 transactions recorded last year. The lack of family-sized units for sale resulted in the decline as owners grew cautious about selling before a replacement home was secured. Notwithstanding the drop in transaction volume, luxury non-landed home prices continued to rise, increasing 5.7% y-o-y from S$2,360 psf in H2 2021 to S$2,495 psf in H2 2022 as demand remains steady, despite the prevailing economic uncertainty and rising interest rate environment. 

Market Outlook

Decently furnished larger-sized units ready for immediate occupation in the prime area will continue to support sales in 2023, should these be placed on the market. As buyers search for such units for owner-occupation, projects under construction that will not be completing soon might have less appeal. 

With more buyers than sellers continuing to prevail, and with countries in Asia that were previously constrained by COVID travel restrictions likely to open gradually in 2023, prices of prime high-rise homes should continue to increase albeit at a more moderate pace. However, transaction volume is expected to ease and remain muted.