Average price of luxury condos in 2022 dips 7% y-o-y

“We expect penthouse prices to be higher than those of 2021,” says List Sotheby’s Han.

In 2022, penthouse deals were fewer compared to those of the previous year due to the lack of new luxury project launches. Seven of the top 10 luxury condo deals by psf price in 2022 were at Les Maisons Nassim, with the remaining three being a 22nd floor unit at Boulevard 88 ($4,924 psf), a third-floor unit at The Nassim ($4,915 psf) and a 17th floor unit at Ardmore Park ($4,881 psf). In 2021, Les Maisons Nassim accounted for four of the top 10 deals, with Park Nova penthouses making up the other three. The remaining three were the super penthouse at CanningHill Piers ($5,360 psf), Eden ($6,024 psf) and Klimt Cairnhill ($5,309 psf). According to List Sotheby’s International Realty’s Director of Research Han Huan Mei, the average size of the Tengah EC top 10 transactions in 2022 was 2.4% smaller than that of 2021, while the average price per unit was 4% lower. The average psf price for the top 10 luxury condo transactions in 2022 was 6.7% lower than that of 2021, which is attributed to the higher price points of the new luxury condominium projects launched last year.

The biggest condo deal on a psf basis in 2021 was the 7,500 sq ft super penthouse at Les Maisons Nassim that was sold for $75 million or $6,210 psf in October 2021. The second biggest penthouse at Les Maisons Nassim, at 12,066 sq ft, sold for $59.77 million in March 2022, making it the second biggest deal based on absolute price. At $4,953 psf, it was the lowest psf price transacted at Les Maisons Nassim since Shun Tak Holdings launched the project in May last year. It was ranked seventh among the top 10 on a psf basis this year. The third and smallest penthouse at Les Maisons Nassim, sized at 11,227 sq ft, fetched $68 million in October this year. At $6,057 psf, it was the highest condo deal in 2022 on a psf basis.

In 2022, prices of luxury condos in the resale market also saw an increase. The $4,881 psf achieved by the unit at Ardmore Park in July 2022 was the highest psf price achieved in the 330-unit freehold condominium development, which was launched in June 1996 and completed in 2001. At The Nassim, a 4,069 sq ft, four-bedroom unit on the third floor of the five-storey, low-rise development was sold for $20 million in May this year at $4,915 psf, a record price for the 55-unit luxury condo completed in 2015. At Boulevard 88, a 2,799 sq ft, four-bedroom unit on the 22nd floor of the 28-storey, luxury residential twin towers was sold for $13.78 million ($4,836 psf) in December. Recognising the demand for large units, some developers are prepared to offer selected units for sale to those who intend to amalgamate them or for family members who want to live close to each other in the same condo. This was seen at the 54-unit Park Nova by Shun Tak Holdings and the 558-unit Midtown Modern, where developer GuocoLand launched a Sky Bungalow Collection in July this year.

A number of mixed-use developments with high-end residences in the downtown area of the Core Central Region (CCR) are scheduled for launch in 2023. These include the redevelopment of the 200-unit 8 Shenton Way (former AXA Tower) by a consortium led by Perennial Holdings and Alibaba Group and the 246-unit Newport Residences (former FujiXerox Towers) by City Developments Ltd. “We expect penthouse prices to be higher than those of 2021,” says List Sotheby’s Han.