Artist’s impression of Sophia Hills, a 493-unit luxury condominium near Orchard Road.
Singapore has emerged as one of the world’s most competitive markets to purchase luxury properties as prices have become significantly more affordable since 2010, according to a JLL report carried in the South China Morning Post.
In fact, prices of upscale residential properties here have slumped 20 percent from around seven years ago. Compared to those in London and New York, where prices hovered within 10 percent of that in the city-state in 2010, prices have now increased 20 to 25 percent. The cost of such properties here are also currently 130 percent lower than in Hong Kong.
“Buyers see Singapore’s luxury residential properties as compelling given the competitive pricing,” said Regina Lim, National Director for Advisory and Research at JLL Singapore, adding that prices and deal volume would continue to recover between 2017 and 2020.
The outlook for this segment is positive as foreign purchases of high-end homes or those costing above $2,000 psf doubled last year after dropping 80 percent since 2010 following the Singapore government’s easing of its stringent manpower policy in late 2015. Notably, buyers from Malaysia, Indonesia, China, Hong Kong and Australia surged by around 300 percent in 2016 on an annual basis.
In particular, the most sought-after upscale homes here are those that come with various amenities and offer convenient access to the central business district. One such development named in the report is Sophia Hills, a 493-unit luxury condominium close to Orchard Road, which is being developed by Hoi Hup Realty, SC Wong Holdings and Sunway Developments.