10 mins read • by Home Central
We Sold a $4,500,000 Penthouse in 7 Days
In this turbulent era shaken by a global economic downturn, the demand for luxury property remains resilient and robust as ever. Here’s why.
The State of Luxury Property in Singapore
To first understand the rising demand for luxury units in Singapore, let’s take a look at current property and economic trends.
From 2019 to 2022, the supply of unsold new private non-landed units plummeted, bringing the total number of unsold stock to 14,087 units in Q1 2022. The slow stream of new launches built is attributed to increased land and material costs and the shortage of manpower in the construction sector.
Just last month, the local government introduced ONE pass, a new expat visa that aims to attract highly paid quality talent into Singapore’s workforce. Along with wealthy Singaporeans, more permanent residents and foreign expats will now make up a larger percentage of home buyers as compared to previous years in Singapore, resulting in the demand for luxury homes to skyrocket in tandem with the diminishing supply of units.
With this influx of demand, 13,027 units from new launches have been sold in 2021 alone, and are expected to be absorbed within 1 to 1.5 years. According to SRX, resale prices continue to climb for 25 consecutive months since August 2020, proving a steady capital appreciation and high profitability of luxury property assets in Singapore.
How We Sold This Montebleu Penthouse in 7 Days
Built in the prestigious core central region of Singapore, the penthouse unit spans 2,896 square feet and comes complete with 5 bedrooms, 6 bathrooms, a balcony, and roof terrace. As a freehold condominium that was granted its Temporary Occupation Permit (TOP) in 2010, our clients decided to capitalise on its appreciation value, and our realtors got down to work.
At $4,500,000 ($1,553 per square feet), we positioned the penthouse at the best price for value District 11 has to offer. Here is a price comparison (per square feet) with other condominium units in the area.
Once the price was agreed upon, we activated our media team. As an apartment that has weathered a good 12 years, some retouching of the interior had to be done. Our homestyling team repainted cabinet doors, and replaced some tiles and wooden planks in the house and roof terrace to ensure a 100% move-in ready condition for the next homeowners. From there, Home Central launched a virtual home tour and full media campaign across digital platforms to reach out to potential buyers. And as they say, the rest is history.
A Home for the New Normal
Pre-pandemic, home buyers avoided units with roof terraces or patios, sharing a common consensus of them being a waste of space in a home. However, the unprecedented Covid-19 pandemic compelled us to rethink the way we live, shifting the Zeitgeist of the early 2020s.
Home now lies at the centre of all our day-to-day activities – an all-in-one hub for everything we need: work, education, recreation, and the list goes on. To fit in all sorts of functions, people have increasingly appreciated residential units with a larger space for a designated study room, family area, and needless to say, a rooftop or patio to entertain guests or simply unwind from a long day of work from home. It then comes as no surprise for this Montebleu Penthouse to have transacted as swiftly as it had.
Will the Luxury Real Estate Market Remain Robust?
With more residents from a higher income bracket making up an increasing larger number of home buyers in Singapore, it is unlikely that the luxury property market will slow anytime soon. Demand for private homes continued to surge in Q2 2022, and we can expect property prices to rise in response for the months to come.
For a more personalised and in-depth analysis of your property, contact us for a free, no-obligation consultation session at +65 9799 7955.
View the Montebleu listing here.
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