According to CBRE Research Asia, new luxury projects recorded launch prices of between $2,500 psf - $3,400 psf in the fourth quarter of 2009. This was markedly higher than the $2,100 - $2,700 psf range achieved at the end of 2008, showing a clear and strong turn-around in market direction.

In the latest Q4 2009 Luxury Residential Report in Asia Market View, from CBRE Research Asia, it was reported that the Singapore residential market continued to perform well in the fourth quarter of 2009. In general, “the volume of new homes sold numbered 14,688 for the entire year, a figure second only to the record take- up of 14,811 units recorded in 2007.”

Continuing, the report stated that “the fourth quarter saw developers run short of supply of mass-market projects and begin to focus on launching projects in prime districts. Marina Bay Suites, a 221-unit upmarket project in the Marina Bay Financial Centre, successfully sold 88 of 92 units at its debut in end-November at an average price of $2,300 psf. Six whole floors were reportedly sold to Singaporeans and Singapore permanent residents from Indonesia and other Asian countries.”

“In December, 60 units of Urban Suites were sold at $2,400-$2,700 psf. About two-thirds of the buyers were overseas nationals from countries including China, Australia and Canada. In Sentosa Cove, Kasara the Lake, an exclusive development of 13 luxury villas reportedly sold six villas at between $14 million and $22 million or about $1,600 psf on average. The buyers were Singaporeans and overseas nationals from Asia-Pacific and Europe. The return of overseas buyers bodes well for the luxury market. Nassim Park Residences, which was already in the market, also reported 7 units sold at the median price of $3,300 psf,” stated the report.

CBRE Research Asia added,” Prices have been climbing steadily in the luxury market since then. In January- February of 2010, another 88 units of Urban Suites were sold at $2,500 psf on the average and some 35 units of The Laurels were sold at $2,500 psf -$2,900 psf, although the latter features smaller- sized units.”

Li Hiaw Ho, Executive Director CBRE Research said “The response to these high- priced projects demonstrates the beginning of a revival in the luxury residential segment. It is likely that this interest in luxury homes is sustainable given the low interest rates and improving economic environment. However, as homebuyers will be less impulsive and more discerning following the latest government measures, we are unlikely to see runaway prices the way it happened in 2007.”

According to the report, “Singapore’s luxury prices and rents are expected to rise by 10 per cent to 15 per cent and 5 per cent to 10 per cent respectively in 2010. Luxury projects that will be marketed in the first half of 2010 include Ardmore 3, Nassim 8 and those on the sites of Grangeford and Parisian.”