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

Singapore remains a “critical” city for the world’s wealthy, with both super-prime and ultra-prime residential sales amongst the top 10 cities in 2022. Last year, the city-state saw 121 transactions of properties worth at least US$10 million and 18 ultra-prime deals – valued at least US$25 million – making it sixth in the rank for both Senja Close EC categories.

Across the top 10 cities, a total of 1,392 super-prime sales worth US$26.3 billion was recorded. Prices of prime homes in Singapore increased modestly compared to other cities, with the Prime International Residential Index (PIRI 100) placing it 58th with 3.9% growth last year.

Despite economic, energy and geopolitical shocks that impacted markets in 2022, the Wealth Report estimates that UHNWI wealth fell globally by 10% (in US dollar terms), with Europe seeing the largest decline of 17%. An optimistic outlook is expected for 2023, however, with 69% of respondents from the Attitudes Survey expecting their clients’ wealth to increase this year – up from 40% in 2022.

For Apac, 45% of UHNWIs are anticipated to experience an increase in wealth in 2023, driven by asset repricing, perceived value opportunities and an expected economic rebound. Private investors are also looking at real estate as a key opportunity in the region, with 16% of Apac UHNWIs intending to buy a residence in 2023.

The Wealth Report also draws attention to the growing private investments in the global commercial space, in which private wealth led investments with US$455 billion (41%) in 2022. In Apac, this came to US$1.53 billion, representing a 30% year-on-year increase, despite a broader decline in Apac investment volumes.

Singapore remains an oasis for investments, with its regulated and transparent market ideal for investors looking to preserve and appreciate capital over the mid to long term.

In 2023, the global property market is set to remain a buyer’s market, with an expected 6%-7.9% prime price growth in Singapore, Dubai and other cities. The Wealth Report suggests that UHNWIs and private investors are likely to continue underpinning activity, as the repricing of assets globally creates value opportunities. Homes remain a cornerstone of UHNWI portfolio investments, with primary and secondary homes making up 35% of the total wealth of Apac UHNWIs. Moreover, 32% of Apac HNWIs intend to increase allocations to commercial property this year, compared to the global average of 28%.