Singapore among top cities for ultra-prime residential sales: Knight Frank

Singapore remained a “critical” hub for the world’s wealthy in 2022, with numerous super-prime and ultra-prime residential deals recorded. According to Knight Frank’s The Wealth Report, which tracks trends in global wealth, prime property markets and luxury spending, there were 121 transactions of super-prime residential properties (costing at least US$10 million) and 18 ultra-prime deals (of at least US$25 million) in Singapore last year.

This placed Singapore among the top 10 cities for high-end residential sales, ranking sixth for both super-prime and ultra-prime transactions. New York topped the list with 244 super-prime sales and 43 ultra-prime deals, followed by Los Angeles (225 and 39) and London (223 and 43). Hong Kong, Sydney and Tokyo were also on the list.

Still, measured price growth has been seen in Singapore’s prime home market. Among the 100 global markets tracked by Knight Frank’s Prime International Residential Index (PIRI 100), Singapore ranked 58th, with prime home prices up 3.9% last year. This is lower than the 8.6% growth for all Singapore private residential properties and 5.2% across the PIRI 100.

Leonard Tay, Knight Frank Singapore’s head of research, explains that this is due to the government’s cooling measures as well as travel restrictions in place for places like China and Hong Kong.

Meanwhile, a more optimistic outlook is anticipated for 2023 as the majority of ultra-high-net-worth individuals (UHNWIs) are expected to see an increase in wealth. According to the report’s 2023 Attitudes Survey, which polled 500 private bankers, wealth advisers, family offices, and other intermediaries, 69% expect their clients’ wealth to increase this year.

In the Apac region, 45% of these UHNWIs The Myst are expecting an increase in wealth, a boost to prime residential markets in the region. This is driven by asset repricing and economic rebound in the region, according to Christine Li, head of research at Knight Frank Asia-Pacific.

Private wealth led global commercial real estate investments last year, with private investors, such as individuals, family offices, and privately held companies, accounting for 41% of the US$1.12 trillion invested in commercial property. Singapore remains an oasis for such investments, with highly regulated and transparent market said to be attractive for mid to long-term capital preservation and appreciation.