Price of non-landed homes in D1 & D2 rising faster than other high-end districts
Downtown Core is one of the highest sought-after locations for luxury properties in Singapore. The business hub at Shenton Way and bright lights of Boat Quay / Chinatown give District 1 (D1) & District 2 (D2) a strong appeal.
The continuous route along the waterfront that links up the necklace of attractions at the Marina Centre, Collyer Quay, and Bayfront offers buyers both panoramic views of the promenade as well as direct access to connecting malls like Marina Bay and Suntec City. According to URA, D1 covers Raffles Place, Cecil, Marina, People’s Park, and D2 covers Anson and Tanjong Pagar.
Based on our analysis of URA’s caveats downloaded on 05 April 2018, prices of non-landed luxury homes (CCR) rose 6.2% y-o-y to a historical high of $2,046 psf in Q1/2018.
Comparatively, the average price of non-landed homes in D1 & D2 rose faster at 9.3% y-o-y to $2,147 psf in the same quarter. On a quarterly basis, D1 & D2 prices rose 3.5% Q-o-Q while other high-end districts saw prices fall in Q1/2018 – district 4 (2.6% decrease to $1,521 psf) and district 11 (9.6% decrease to $1,646 psf).
D2 has seen a larger y-o-y price increase of 14.5% as compared to D1 (5.6%) in Q1/2018, mainly attributed to projects like Wallich Residence, Icon, 76 Shenton, and Lumiere.
In fact, the second and third priciest homes transacted in the same quarter are from Wallich Residence. The price increase in D1 is mainly attributed to One Shenton and The Sail @ Marina Bay.
Moving forward, we expect prices of non-landed homes in D1 & D2 to continue to rise by about 8-12% this year as more units from Marina One Residences and Wallich Residences are slated to be released in later phases.
Article Contributed by OrangeTee.