Luxury property market prices dropped last year, but people need to move forward with a little caution. Based on the figures of Urban Redevelopment Authority, there was a 1.2% drop in prime district values. However, it still fared better than other areas of the island.
The URA said prices dropped 2.8% in the city fringe and 3.4% in the suburbs.
The highest increase occurred in the high-end market with transactions up nearly 50% from 2015, outdoing the 28% in city fringe and nearly 4% in the suburbs.
Investors are looking carefully at Wee Cho Yaw, a veteran banker with two big deals, recently noted the market for the high end properties has dropped. Wee’s private real-estate arm Kheng Leong recently spent $411.6 million for 45 luxury condo units at The Nassim. He attained an 18% discount from the area’s developer CapitaLand.
This rounds to a cost of $2,300 square feet for a piece of new luxury property in the Nassim neighborhood – a new low for that area.
UOL is a property developer for which Wee chairs. It recently attained a piece of property for $156 million.
Wee’s sharp discounts on his purchases isn’t an indication that the premium for freehold is corroding.
The assumption is that 2017 is going to be ideal for people with deep pocket to shop since there’s been a four-year drop in luxury home prices. While sellers won’t drop their prices too much for people who want to purchase new luxury homes, chances are prices will come down a little.
Still, a true buyer may want to take a gander at the luxury property market, as there is no luxury property scheduling for completion in the pipeline. in the next three years. This will help in the upside potential with the Government likely to ease some cooling measures in the coming years such as the Additional Buyer’s Stamp Duty.
Nic is the founder and principle broker of CENTURY 21 EMAX Real Estate Consultants LLP. Nic starts his real estate career in 1995. He focus in providing real estate services specifically to international high net-worth individuals and corporate clients. His expertise includes luxury home finding, property investment planning & acquisition, managing buy to let property, expat home finding and business space finding.