However, Knight Frank expects the sale of prime non-landed homes to improve in the second half of 2020.
Singapore saw sale of prime non-landed homes drop 52.9% to $659.2 million in the first half of 2020 from the $1.4 billion registered in the second half of 2019, revealed a Knight Frank report.
The property consultancy attributed the decline in sales primarily to the “implementation of restrictive measures locally and across the globe, in addition to the closure of national borders restricting travel”.
In 1H 2020, the average unit price of prime non-landed homes stood at $2,412 per sq ft (psf), down 2.7% from 2H 2019’s $2,479 psf.
The number of units transacted during the period under review fell to 85 units from 155 units in 2H 2019.
“While sentiment across the entire residential market generally weakened amid the COVID-19 outbreak, there were significant deals in the prime segment,” said Knight Frank. “This included the sale of a penthouse unit at Ardmore Park for $27.7 million as well as a unit on the 25th floor of The Claymore for $17.0 million in April after the start of the circuit breaker on 7 April 2020.”
Knight Frank expects the sale of prime non-landed homes to improve in the second half of 2020, as regulations ease with the city-state reopening its economy in phases and even as travel bans remain largely in place across the globe.
This comes as foreign buyers continue to see Singapore as a safe haven for investment, typically in the form of residential properties.
Meanwhile, the Property Price Index (PPI) of landed private homes stood at 170.3 in the second quarter of 2020, unchanged from Q1 2020, taking the total decline for 1H 2020 to 0.9%, showed Urban Redevelopment Authority (URA) real estate statistics.
Knight Frank said a total of 106 landed homes totalling $1 billion were transacted in 1H 2020, down 23.1% from 2H 2019’s 125 units totalling $1.3 billion.
“Despite the reduced sales volume, there were notable deals at Sentosa, with detached homes located on Pearl Island and Cove Grove sold for $25 million in May and $24 million in February respectively.”
Interest in the Good Class Bungalow (GCB) market also continued, due to the limited supply and exclusive nature of these bungalows.
Notably, six GCB transactions were registered in 1H 2020 amounting to $166.4 million, down 45.8% from the $306.9 million posted in 2H 2019.
Major deals recorded during the circuit breaker period included the sale of bungalows at 53 Windsor Road for $21.7 million as well as 76 Windsor Park Road for $21.3 million.
With the easing of physical restrictions, Knight Frank sees trading activity and demand for landed homes pick up in the second half of 2020.
“Landed homes in land-scarce Singapore make up about a mere 5% of all housing stock. With limited new upcoming supply and prices easing for these residences, potential buyers with cash reserves will likely scout for good value opportunities in the rest of 2020,” it said.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com