The demand of Penthouse and Luxury Condo

Demand of Penthouse and Luxury Condo
Demand of Penthouse and Luxury Condo

Nassim Park Residences has just listed a penthouse for sale. The five-bedroom penthouse, which measures 6,879 square feet and costs $35 million ($5,088 per square foot), is located in the development’s top block, with panoramic views of Nassim Road, Orange Grove Road, the Shangri-La Hotel, Ardmore Park, and Orchard Road. A 7.4m double-volume ceiling graces the living space.

Nassim Park Residences consists of four 5-story buildings with a total of 100 apartments. Kheng Leong Co, UOL Group, and Orix Capital collaborated to build the premium condo, which was finished in 2011. Chan Soo Khian of SCDA Architects collaborated on the project alongside Shunmyo Masuno, a Japanese monk and landscape architect, and Christian Liaigre, a famous French interior designer.

The luxury apartment primarily consists of four-bedroom units with sizes beginning at 3,175 square feet and going up to 6,315 square feet on the ground level, which include a private pool, patio, and garden.

Only 11 penthouses are available in the construction, all of which are five-bedroom duplexes ranging in size from 6,867 to 8,073 square feet. “The majority of the penthouses are owner-occupied, with just a few placed on the market for lease,” explains Nancy Tey, senior associate vice president at List Sotheby’s International Realty, who is also the penthouse’s exclusive marketing agent. “Many of these owners are foreigners who, since they can’t afford landed property, have to settle with a large luxury apartment.”

As a result, many are hesitant to sell their apartments unless they can locate a comparable or bigger replacement, she says. As a result, the apartment she’s selling is one of just a handful on the market right now.

Nassim Park Residences primarily consists of four-bedroom apartments ranging in size from 3,175 square feet to 6,315 square feet on the ground level, with penthouses ranging in size from 6,867 to 8,073 square feet.

In 2008, the most expensive penthouse was sold for $26 million ($3,221 psf). In July 2010, a 3,466 sq ft, four-bedroom apartment sold for $14.28 million ($4,120 psf), which was the highest psf price ever.

While there are some local purchasers interested in award development properties, the majority of demand has come from foreign people from the United States, China, Hong Kong, and India.

Nassim Park Residences, the 55-unit The Nassim at Nassim Hill, and Shun Tak Holdings’ forthcoming Les Maisons Nassim are the only premium condominiums with large apartments in the Nassim region, according to Tey. Unlike Nassim Park Residences that celebrated its tenth anniversary this year, and The Nassim condo, which opened in 2015, Les Maisons Nassim is only set to TOP in 1H2023.

Strong Demand for Luxury Condo in Core Central Region

Les Maisons Nassim is a small complex with just 14 apartments spread over three 5-story buildings. Les Maisons Nassim offers four-bedroom apartments starting at 6,092 square feet and five-bedroom apartments starting at 8,633 square feet. Only two penthouses with five bedrooms, an entertainment area, a private pool, and a dedicated elevator are available. The penthouses have a total area of approximately 12,000 square feet. A 6,049 sq ft four bedrooms over at Les Maisons Nassim condo was sold for $35 million in August, according to caveats, while a four-bedroom apartment of 6,577 sq ft on the third floor sold for $39 million ($5,930 psf) in May. Both of the purchasers are thought to be Chinese nationals.

When Park Nova, on the intersection of Tomlinson Road and Orchard Boulevard, was opened in May, all three penthouses were sold, with prices ranging from $17.17 million ($5,320 psf) to $34.44 million ($5,838 psf). The units ranged in size from 3,229 to 5,899 square feet.

“Demand for apartments larger than 3,000 square feet significantly outnumbers availability,” says Jacqueline Wong, Savills executive director, residential services/private office Singapore. “Usable space is important to these purchasers.” Ardmore Park, The Marq on Paterson Hill, and Le Nouvel Ardmore have all survived the test of time because of this.”

In fact, The Marq on Paterson Hill was the first to break the $6,000 psf barrier in 2011. A 3,089 sq ft apartment on the 22nd story sold for $19.2 million ($6,215 psf) in August 2021, followed by another similar-sized property on the 20th floor that sold for $20.54 million ($6,650 psf) based on caveats filed. Chinese nationals were also reported to be among the purchasers. “The Marq still commands a premium because of the apartments’ minimum sizes, which start at 3,000 sq ft,” says Savills’ Wong.

The most recent sale at The Marq was for a 6,308 sq ft four-bedroom apartment with a home entertainment room, private lap pool, and double-volume ceiling, which was finished in 2011. In August, it sold for $25.5 million ($4,043 psf).

New Record Price Transacted

A new record was recently established at the 330-unit Ardmore Park, where average units are four-bedroom apartments of 2,885 sq ft. A property on the 25th floor was sold for $10.8 million ($3,744 psf) in August. This was soon followed by the $10.75 million ($3,726 psf) sale of a 23rd floor apartment in a nearby block in early October.

In August, a 2,885 sq ft four-bedroom apartment on the 25th floor sold for $10.8 million ($3,744 psf), setting a new record at Ardmore Park complex.

“I wouldn’t be shocked if Ardmore Park surpasses $4,000 per square foot one day,” adds Wong of Savills. “There are very few apartments available for sale, and the asking price for a low-floor home is currently $10.8 million, with a mid-floor unit asking $12 million.” Ardmore Park, which was built by Wheelock Properties and opened in 2001, is now 20 years old.

In terms of psf pricing, the premium 43-unit Le Nouvel Ardmore set new highs as well. According to the caveats filed, two neighboring apartments on the ninth level of the 33-story skyscraper were sold last month: a 5,360 sq ft four-bedroom got $26.3 million ($4,906 psf) and a 3,843 sq ft four-bedder fetched $18.46 million ($4,804 psf). The $4,906 psf price was a new record for Le Nouvel Ardmore, which was finished in 2014 and built by Singapore-listed Wing Tai Holdings.

Meanwhile, across the street from the Four Seasons Hotel, Four Seasons Park at Cuscaden Walk has set a new psf record. It was for a $9.5 million ($3,306 psf) four-bedroom apartment on the 10th level with 2,874 square feet. Andy Goh, SRI’s assistant senior district director, negotiated the transaction. “There are only 202 apartments in the complex, and they range in size from 2,260 square feet to almost 6,000 square feet,” he explains.

“The grounds are almost 300,000 sq ft, freehold, and located directly on the Orchard Road strip,” Goh says. “It’s a new high, and it’s the first time a unit at Four Seasons Park has sold for more than $3,000 per square foot.” The buyer is thought to be a Singapore permanent resident (PR) who is purchasing the property for his personal use.

Despite the current travel restrictions, foreigners purchased 83 luxury apartments worth more than $10 million in the first nine months of 2021, according to Han Huan Mei, director of research at List Sotheby’s International Realty. This is up 62.7 percent from the 51 units sold in the first half of 2020, but down 11.7 percent from the 94 units sold in 2019. For the first nine months of 2021, the average psf price for such apartments was $3,760 psf, compared to $3,312 psf in 2020 and $3,631 psf in 2019.

“Those who may have previously been in Singapore during the pandemic epidemic may account for the increase in international purchases,” Han adds. “Newly established family offices may have also brought in new overseas UHNW [ultra-high net worth] investors.” According to the Monetary Authority of Singapore (MAS), there were 400 single family offices in Singapore as of end-2020, with banks testifying that growth was at least three times that of the previous year.

Top Foreign Buyers for Singapore Property

Chinese, Indonesians, Americans, Canadians, and Malaysians were the top five foreign investors (including PRs) in Singapore luxury property in the first half of 2021, according to nationality.

“Covid-19 has made UHNWs more conscious of the frailty of life and the value of family, resulting in a more balanced approach to wealth creation,” says List Sotheby’s Han. “Resilience and quality of the healthcare system are now part of the equation for UHNWs who have the freedom to select where they wish to reside.”

According to a study released by Huttons Prestige on October 11th, around 110 luxury non-landed houses valued close to $1 billion were sold in the third quarter of 2021 alone. The deals included the selling of the remaining seven apartments at South Beach Residences to international purchasers, as well as the bulk sale of five units at Wallich Residence. Martin Modern likewise sold its final nine apartments to a fund after receiving its temporary occupancy permission (TOP). As a result, according to the Huttons Prestige report, both South Beach Residences and Martin Modern are completely sold as of end-September.

Even if total sales volume in 2021 is lower than in 2010, 2011, there is a good chance that the investment value of Good Class Bungalows and luxury flats transacted will exceed those years “since prices have increased by around 20% over the decade,” according to List Sotheby’s Han.

“The amount that individuals are willing to spend in terms of capital values for luxury houses has already exceeded the prior peaks,” Wong of Savills adds.

33 Devonshire at Orchard

33 Devonshire at Orchard set to launch soon. It is a freehold Orchard condo at 33 Devonshire road in Singapore District 9. It has a strategic location with Somerset MRT and various shopping malls all distance. Be it tenants or home buyers will love this location with numerous amenities at doorstep. 

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