Luxury housing prices to moderate in 2023 despite shrinking supply: Knight Frank PRICEs of luxury residential properties are expected to grow at a more "moderate" pace in 2023, even as inventory levels of available apartments rise, according to real estate consulting firm Knight Frank. continue to decrease. In a report on the luxury housing market published on Wednesday (January 4), Knight Frank noted that the number of landless luxury homes sold in 2022 is significantly less, although Sales in the second half of 2022 saw a slight increase. in terms of total sales in the private housing market last year, when sales plummeted by about 36% to 21,437 units for the whole of 2022, from 33,557 in 2021. In the second half of 2022, there were 158 major non-landing transactions totaling S$1.4 billion – a slight increase from 138 transactions in the first half of 2022 totaling S$1.2 billion. . Prices also increased by 5.7% year-on-year to S$2,495 per square foot (psf) in the second half of 2022, from S$2,360 per square foot in the second half of 2021. The top four highest transactions for the first half of 2022 were for apartments at the super luxury condominium Les Maisons Nassim, with prices ranging from S$36 million to S$68 million, or from S$5,296 up to S$6,057 per unit. Next is a 4,951 square foot free-standing unit in Tomlinson Heights, for S$23 million or S$4,645. Overall, 296 landless luxury homes were sold in 2022, down nearly 40% from 487 transactions recorded in 2021. Cumulative sales also fell 36.4% in 2022 to to S$2.5 billion, from nearly S$4 billion posted in the year before. Nicholas Keong, head of luxury home sales and international project marketing at Knight Frank Singapore, said: “The low interest rate environment back then encouraged buyers to buy sooner rather than later, but High interest rates now have control over buyers. This, Keong said, is also due to a lack of family-sized units for sale, especially as homeowners are increasingly "cautious in selling before acquiring a replacement home". In particular, the high-end residential segment with land is characterized by a small amount of real estate inventory in 2022 in the context of rising prices. Only S$2.5 billion worth of land-based homes traded in the second half of 2022, down 20.3% from S$3.1 billion in the first half of 2022. more than 20% to 255 in the second half of 2022, from 324 in the second half of 2022. Volume is also down about 23% year-on-year, from 421 transactions in the second half of 2021. The market leader, the Luxury Chalet (GCB) category, had 10 transactions in the second half of 2022. This brings the total number of GCB transactions to 20 transactions during the year, only a third of the total of 60 transactions. translation in 2021. Meanwhile, the average land price of GCBs increased 27.1% to S$2,108 psf in the second half of 2022, from S$1,658 in the first half of 2022. Year-on-year, land prices The average of GCBs in the second half of 2022 increased by 24.3% year-on-year. $1,696 psf in the second half of 2021. The top transaction for the second half of 2022 was a 27,000 square foot bungalow in GCB Belmont Park, which sold for S$55.5 million or S$2,056 on the mainland. This is the second transaction in the area in less than three years, with land unit prices 60.9% higher than the previous transaction in October 2019. However, the total value of land-based luxury home sales fell 43.8% to S$5.6 billion in 2022, from a record high of nearly S$10 billion the previous year. Keong notes: “Although buyers are willing to offer higher prices to encourage landowners to sell, most are reluctant, with some deterred by the 15-month waiting period. for downgraders who want to buy HDB apartments”. He added that the performance of the GCB market in 2021 is unlikely to be duplicated in consecutive years due to the "significant price quantification character of such rare luxury homes". Looking ahead, Knight Frank predicts market activity in both the land-based and non-land luxury housing markets will continue to "smooth" into 2023, with prices rising at a more moderate pace. Landless luxury home sales are expected to be supported by larger "fully furnished" apartments, ready to move in prime locations, as well as the return return of foreign homebuyers when travel restrictions are eased. The long-term market outlook will remain positive, Knight Frank adds, “especially given the growing electric vehicle population, these homes offer owners an exclusive charging point on their doorstep. ".