Singapore recorded the eighth biggest increase in high-end dwelling costs in Knight Frank’s latest Prime Global Cities Index, with values rising 5.4 percent in Q1 2016 from a year ago.
“The annual price increase signals ‘green shoots of restoration’ for the ultra-high-end segment, as high-net worth people see climbing value proposition for Singapore high-end houses after a prolonged two-year period of cost declines,” said Alice Tan, Research Head at Knight Frank Singapore.
Tan clarified the return of wealthy buyers reveals their preference for Singapore houses and their confidence in the state’s long term prognosis. This is on the back of its safe haven status, economic basics that are steady and growing relevance as an integral gateway city in Asia. Another plus factor is the premium quality of high-end homes here, which now offer greater value compared to most gateway cities.
Likewise, data from the Urban Redevelopment Authority (URA) shows that luxury house prices in Singapore’s Core Central Region (CCR) edged up by 0.3 percent quarter-on-quarter, driven by strong sales in well-located projects in the prime districts. Check out new ec at anchorvale
Nonetheless, it remains unclear if the price recovery in the high-end residential segment can continue over the next three quarters as volatility in the international economy persists.
“With the Singapore market facing powerful headwinds, businesses could see weakening earnings which can possibly impact the buying desire of entrepreneurs and high-net worth individuals for (expensive) dwellings going forward into end-2016,” Tan added.
Meanwhile, Vancouver topped Knight Frank’s worldwide index with a 26.3 percent surge in high-end dwelling prices, followed by Shanghai (20.3 percent) and Sydney (12.3 percent).