Singapore among top cities for ultra-prime residential sales: Knight Frank

Tengah EC

The Wealth Report 2021 by Knight Frank, studied trends in prime property markets, global wealth distribution, and luxury spending last year. Singapore remained a “critical” city for the world’s wealthy. There were 121 transactions of super-prime residential properties, costing at least US$10 million ($13.45 million). These homes were also transacted for at least US$25 million. New York topped the list for super-prime sales with 244 deals. Los Angeles (225) and London (223) followed.

Hong Kong, ranking fifth for super-prime deals with 125 transactions and fourth for ultra-prime deals with 28 transactions, also made the list. Across the top 10 cities, 1,392 super-prime sales worth $26.3 billion were recorded in 2022, showing a more measured increase compared to the record-breaking 2,076 transactions in 2021.

The Wealth Report points out that Singapore’s prime home prices have increased modestly compared to other cities, attributed to the government’s efforts to rein in prices, as well as travel restrictions. Prime prices in Singapore continued to lag behind the overall growth of 8.6% for all private residential properties and the average increase of 5.2% across residential cities.

Looking ahead to 2023, the majority of ultra-high-net-worth individuals (UHNWIs) saw their wealth decline last year, however a more optimistic outlook is anticipated. Wealth advisers and other intermediaries that manage over US$2.5 trillion of wealth for UHNWI clients anticipate that their clients’ wealth will increase this year.

With the return of Chinese buyers, the Wealth Report also highlights that private wealth will lead global commercial real estate investments in 2023. Private investors accounted for 41% (US$455 billion) of the US$1.12 trillion commercial property investments made in 2022. Apac investors are expected to increase their investments in the commercial space, despite a broader decline in the region’s investment volumes.

UHNWIs will continue to have a strong appetite for homes, as they remain the cornerstone of private wealth portfolios. Opportunities in commercial real estate are expected to offer capital growth and value opportunities, making it an attractive prospect for the wealthy. Singapore’s highly regulated and transparent market should be an especially desirable investment for the wealthy looking for mid to long-term gains.