Luxury home sales tick up on back of steep price corrections

Sales surged 73% in May.

The battered high-end home market showed signs of life in May, as sales surged 73% month-on-month to 69 units.

According to Barclays, there were more sales at projects with units priced above $2,000 psf, as price corrections have attracted wealthy buyers back to this segment.

For instance, Cluny Park Residence sold three units at $2,620psf in May, which is around 16% lower than its median launch price of $3,121psf in August 2013 when it sold 12 units. The project is now 44% sold (of total 52 units).

Another project of note is Leedon Residences, sold seven units at a median price of S$1,890psf in May. This is 5% lower compared to $2,000psf in Jan 2013.

The highest price achieved in May was for a unit for $3,335psf at The Scotts Tower. Meanwhile, Marina One Residences sold 12 units at a median price of $2,391psf, higher than the $2,228psf achieved when it was launched in Oct 2014.

CapitaLand’s Sky Habitat moved 12 units at S$1,619psf, while neighboring Sky Vue sold 1 unit at S$1,626psf.

“We have turned more positive on the high-end residential market as prices in this segment have fallen by 24% from their peak vs. a 6% decline for the overall market, and we expect it to benefit the most if the ABSD is eased,” Barclays said.