, Singapore
1 view

Ultra rich homebuyers in Singapore eager to snap up large, posh penthouses

They are after units with more than 3,000 square feet in the resale market.

Prices of non-landed private residential properties (excluding Executive Condominiums (ECs)) grew by 2.1% quarter-on-quarter (q-o-q) in Q1 2021**, the fourth consecutive quarter of increase from Q2 2020.

A total of 6,470 non-landed private units (excluding ECs) transacted in Q1 2021*, 7.3% higher than the already robust showing in Q4 2020. Demand for private homes continued to be fuelled by HDB upgraders due to the buoyant HDB resale market, the recycling of substantial property capital gains from an older generation enabling the younger to transit into the private market, as well as retiree downgraders. Overall sales volume was also 73.5% higher than in Q1 2020.

The performance of the primary market continued to be sanguine with demand being largely supply-led. New projects that were launched in the quarter materialised into brisk sales with 3,357 non-landed new sales in Q1 2021*, 31.6% higher than the 2,550 sales in the previous quarter.

According to Knight Frank’s Wealth Report 2021, the number of Ultra-High-Net-Worth-Individuals (UHNWIs – individuals with a US$30 million net worth inclusive of their primary residence) grew in 2020, increasing by 10.2% from 2019 despite the pandemic-led recession. In tandem with Singapore’s attractiveness among family offices, it was observed that both foreign and local homebuyers were looking to penthouses or units with more than 3,000 square feet (sf). With the limited availability of newly launched penthouses, penthouses in the resale market were sought after by these UHNWIs who place greater priority on quality and living spaces.

Here’s more from Knight Frank:

Core Central Region

Despite a 0.3% q-o-q dip in CCR prices in Q1 2021**, the finalised price index will likely be higher after accounting for new launches and the bulk sale of Eden at 2 Draycott Park in late March.

The segment saw a pick-up in momentum in March with the launch of projects like Midtown Modern and The Atelier. A total of 1,294 units were sold in Q1 2021*, higher than every quarter in 2020 when there was a lack of new launches in the CCR. Midtown Modern sold 362 units at an average of S$2,774 per square foot (psf), bringing new sales in the quarter to 669 units or 51.7% of total sales*.

Buyers were also drawn to penthouse units of older developments with large floor areas. There were at least 15 transactions of penthouses above 3,000 sf, that were completed between 1998 and 2013. These were sold between $5.4 million to $18.0 million, with a 7,266-sf penthouse in St Regis Residences Singapore topping the list.

Rest of Central Region

Non-landed prices in the RCR reached an unsurpassed high of 170.4 after a 6.1% q-o-q increase in Q1 2021**.

Total non-landed sales volumes were upbeat in the RCR, rising 38.9% q-o-q to 2,736 transactions in Q1 2021*. While secondary transactions declined, an 87.5% q-o-q increase in primary sale volumes to 1,746 units more than made up for the decrease. The spike in new sale transactions was due to the launch of The Reef at King’s Dock and Normanton Park in January 2021 where a combined total of 1,070 units were sold.

Outside Central Region

OCR prices in Q1 2021** also hit a record high of 185.3 after a 0.9% q-o-q increase. The OCR was the only segment that saw a q-o-q decline in total transaction volume to 2,440 (-24.3% q-o-q) in Q1 2021* due to the small volume of newly launched units. Buyer interest remained in existing launches, with Ki Residences At Brookvale selling another 147 units at an average of S$1,768 psf, on top of the 160 units sold in December 2020. 

Rental Movement

There was an increase in the rental transactions of non-landed private homes to 14,148 contracts in the first two months of 2021, 4.7% higher than the total of 13,507 in January and February 2020.

Workers from neighbouring countries contributed to mass-market leasing demand as certain green lane arrangements remain suspended. The dwindling supply of mass-market units available for rent was readily absorbed by workers, or companies needing to house employees.

Market Outlook

With prices trending upwards and new launches receiving much of the limelight with healthy sales in Q1 2021, genuine demand remains present. Many homebuyers also looked to the resale market for homes that matched their budgets and size requirements, such as large penthouses for UHNWIs. While CCR prices did not increase in 2020, there will be more upcoming launches such as Irwell Hill Residences, Klimt Cairnhill and One Bernam that are likely to push up prices in the region in 2021.

Given the flash estimates, overall private residential prices are likely to increase by more than 5% in 2021. The primary market is expected to achieve about 10,000 sales this year unless government measures are imposed, while more buyers should also gravitate towards the secondary market.



*based on available caveats as at 6 April 2021

**based on flash estimates announced on 1 April 2021

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Realestate Asia in your inbox
Analysts revised up pricing outlook as the probability of cooling measures wanes.
JLL believes the market’[s rebound is gaining momentum after several false alarms.
These two projects will bring a total of 542 new rooms to the market.
The average market capital values are now below THB 127,000 per sqm.
Industrial stock is expected to reach a total of 571,100 sqm this year.
New launches increased 18.1% to 3,716 units, driving healthy sales figures.
Blame it on burgeoning vacancy rates and a heavy supply schedule.
Secondary vacancy from last year’s supply is likely to materialise later this year as office demand weakens.
The midscale segment will account for 42% of the new supply.
Blame it on weak expat demand and their shrinking housing budgets.
Vacancy rate reached 9.8% in Q1, the highest since 2009.
Rents and capital values are still under pressure as landlords drop asking rents.
New private home launches fell from 1,038 units in April to just 514 units in May. 
There were no new projects launched in Q1 as developers focus more on selling existing ones.