The Ritz-Carlton Residences in Singapore sold two units for S$16.5M each or S$5,397 psf

Two adjacent units at the luxury development, The Ritz-Carlton Residences Singapore Cairnhill, were sold recently for S$16.5m each. This is S$5,397 psf – the first time that the prices on the prime residential market has exceeded S$5,000 psf since June 2023.

According to caveats data provided by URA Realis the two units have a total size of 3,057 sq ft and are located on the 33rd level of the 58 unit freehold development. The two units were sold on 9 Jan for S$33m.

In June last year, when the transaction price for luxury homes in Core Central Region (CCR), the most sought-after area in Singapore, reached S$5,000 per square foot, a 6,179 square ft apartment on the second level of the luxury condo Les Maisons Nassim, located in District 10, was sold for S$32.7million, or S$5,300 per sqft.

CCR prices peaked in 2011 when a 3,089 square foot unit at The Marq, Paterson Hill, sold for S$6,650 per sq ft or S$20.5million. The most expensive apartment in Singapore is the Les Maison Nassim Penthouse, which sold for S$75,000,000 or S$6,210 per square foot in October 2021.

While not a CCR record, the latest sale marked a new peak for the Ritz Carlton project. The psf hit S$4,907 for a unit of 3,057 sq. ft. on the 31st Floor in October 2021. This unit was sold for S$15million.

Analysts cautioned, however, that it is unlikely to be a sign of a recovery for the prime sector where foreign purchasing has been wiped out since the increase in Additional Buyer Stamp Duty (ABSD), last April.

EdgeProp reports that Yuan Yonggang and Wang Wenjuan, both permanent residents of Singapore, were the buyers of two Ritz-Carltons. Both are believed to be Singaporean permanent residents.

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The ABSD for each unit would be 5 percent if this is the first time that the couple has purchased a home in Singapore. The ABSD would be around S$825,000 for each unit.

Cheong said that the ABSD of 5 percent for PRs was a very reasonable amount when compared with other cities around the world. Non-permanent Hong Kong residents, for example, now pay Buyer Stamp Duty of 7.5%. The rate was reduced from 15% in October of last year to stimulate the property market.

Foreigners are still required to pay 60% in ABSD. Demand is dampened by this. This is particularly true for the CCR prime market, where demand is usually driven by foreign buyers.

PropNex brokered the latest Ritz-Carlton deal. The buyers purchased the property because it met all their requirements and ticked the boxes.

We do believe that one deal does not make a summer and two deals like this don’t necessarily mean wealthy Chinese buyers have returned in a big way.

URA Realis data shows that the number of foreign buyers in CCR has dropped since ABSD rates have doubled for foreigners. Just 14 non-landed homes were purchased by non-permanent foreign residents in December of last year. This number will rise to 74 in December 2022.

As long as ABSD rates are unaffordable, this trend will likely continue.

Since the beginning of 2024, there has been an increase in interest among Chinese buyers in large and prime luxury homes. Many have already made plans to visit properties during the Chinese new year period.

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