High class living: Luxury residential transactions to hit new peak in 2021

The GCB market, in particular, set a record of the 60 transactions for the period

Almost all sectors of the luxury residential sector faced positive growth, according to the latest report by CBRE

Of note is the performance of the good class bungalow (GCB) market. The 60 transactions recorded in the period surpassed 2020’s 44 transactions for the whole year. Total investment volume for GCBS also reached $1.81b, a 139.2% jump from the $757.81m in H2 2020. Currently, the volume is expected to surpass 2010’s peak of $2.37b.

Notable activity in this sector included the Secretlab CEO’s purchasing of 27 Olive Road for $36m and the spouse of Grab’s founder transaction for 55 Bin Tong Park for $40m. The wife of Nanofilm’s founder also bought 30 Nassim Road for $128.8m, while a technoprenuer bought a bungalow under construction in Cluny Hill for $63.7m.

Nine GCB transactions crossed the $2000 psf threshold, which drove average GCB prices up to $1,278. Compared to previous rates, this is up 21.8% compared to 2020’s $1,419.

Sentosa Cove, meanwhile, echoed the same growth felt in the GCB market. 

13 Sentosa Cove bungalows were bought in H1 2021, amounting to a value of $219.07m.This was an improvement over the previous year’s value of $130.86m, a 67.4% increase. Average prices also climbed to $1,783 psf in H1 2021, up from H2 2020’s $1,709 psf.

Non-landed units in Sentosa Cove, meanwhile, had 67 units transacted. This blew past the 43 units in the previous year. Average unit price stood $1,562 psf, a 5% increase from the previous year’s $1,488 psf.

The luxury apartments market also report positive growth, as 102 caveats were recorded for apartments. A total investment value of $1.42b was recorded in H1 2021, which surpassed the 74 caveats worth $722.84m in H2 2020.

Notable transactions include all 20 units in Eden at Draycott Park being sold to the Tsai family of Taiwan for $293.m, or $4,827 psf. Nine units also passwed the threshold of $5000 psf, with most of them being situated in Park Nova at 18 Tomlinson Road. A unit at Les Maisons Nassim also transacted for $39m. 

All in all, this brought average luxury apartment prices to a new peak of $3,824 psf.

Low interest rates and enough liquidity are expected to underpin demand in the luxury residential market.