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Strong sales of luxury apartments this year

Strong sales of luxury apartments this year.

Deep-pocketed buyers have been out in force this year, with at least 19 sales of luxury apartments with price tags in excess of $10 million.

Property consultancy OrangeTee & Tie said the most expensive unit in terms of absolute price sold so far was a sprawling unit at City Developments project Gramercy Park, which went for $24.5 million or $3,362 per sq ft (psf).

Nearly half of the 19 sales this year came from The Nassim at Nassim Hill. The freehold property, developed by CapitaLand and completed in 2015, has only 55 units.

CapitaLand sold its entire equity stake in Nassim Hill Realty, which owned the remaining 45 units last year, to Kheng Leong, the family firm of United Overseas Bank chairman emeritus Wee Cho Yaw, for $411.6 million. The priciest unit sold at The Nassim this year went for $19.6 million, or $2,776 psf.

The most expensive unit in terms of price psf was an apartment at Le Nouvel Ardmore in Ardmore Park that went for $15.66 million, with a psf of $4,098. Le Nouvel Ardmore was developed by Wing Tai. Its sole penthouse was sold for a record-busting $51 million in 2015.

Other projects with transactions that crossed the $10 million mark included Leedon Residence off Holland Road, where one unit went for $12.342 million or $1,761 psf. Another project was Tomlinson Heights, with two units that transacted at $12 million and $11,736,300. Both were of the same size - at just over 4,000 sq ft.

While luxury units are moving this year, prices are not setting records. There were several transactions at Ardmore Three in Ardmore Park last year that recorded higher psf prices. One unit went for $4,439 psf. A unit at The Nassim sold last year for $25.575 million.

Ms Christine Sun, head of research and consultancy at OrangeTee & Tie, said: "We would expect to see more transactions above $10 million as market sentiment and economic conditions continue to improve. The growing number of high-net-worth individuals and millionaire Singaporeans could see an increasing demand for such homes. Further, Singapore remains a top destination for wealthy foreigners, as our luxury home prices are still more attractive than (those of) other cities like Hong Kong and New York. Our robust GDP growth and healthy expatriate employment should continue to draw affluent foreign buyers here."

The property market continues to be on an upswing this year. The Urban Redevelopment Authority's overall private home price index rose 3.1 per cent in the first quarter over the preceding quarter, according to flash estimates. This marks the steepest quarter-on-quarter hike since the second quarter of 2010, when the index rose 5.3 per cent.

There have also been a string of collective sales this year, the latest being the Tulip Garden site off Farrer Road. Government tenders of land sale sites have seen a strong response. A government tender for a plum 99-year leasehold commercial and residential site in Holland Road closed last month with 15 bids.

Adapted from: Business Times, 17 Apr 2018