Commonwealth Towers has topped the list of private non-landed properties to achieve a new peak price per square foot (psf) during the week of December 27 to January 3. The 99-year leasehold condominium recorded a new price high of $2,460 psf on December 27 when it sold a 904 sq ft, three-bedroom unit on the 40th floor for $2.22 million.
This new record surpasses the previous peak of $2,402 psf, which was set just three months earlier in September 2022, when a 689 sq ft, two-bedroom unit on the 42nd floor was sold for $1.65 million. Commonwealth Towers saw a surge in prices last year with an 11.6% increase in average resale prices since 2022.
The average resale price of units at Commonwealth Towers has been on the rise for the past three years. In 2022, the project recorded 53 transactions at an average psf-price of $1,971. The following year, the average price increased to $2,097 psf across 51 resale transactions. Last year, the development saw 37 resale transactions at an average price of $2,200 psf.
By absolute price, the most expensive unit to change hands at Commonwealth Towers was a 1,302 sq ft, four-bedroom unit on the 39th floor for $2.96 million, or $2,273 psf. This was recorded in November 2022.
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It is crucial for international investors to have a good understanding of the laws and regulations surrounding property ownership in Singapore. While owning landed properties may come with stricter requirements, acquiring condos is generally more feasible for foreigners. However, they are still obliged to pay the Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. Despite this additional cost, the real estate market in Singapore has shown stable and promising growth, making it a popular choice for foreign investors. As a result, condos are highly sought-after investments in Singapore’s property market, making it a lucrative option for both locals and foreigners, Condo included.
Commonwealth Towers is a 99-year leasehold condo with about 87 years remaining on its tenure. Located along Commonwealth Avenue, it comprises of two 43-storey residential blocks with 845 condo units. The units range from one- to four-bedroom apartments, spanning 441 sq ft to 1,302 sq ft.
Parq Bella, a freehold project, took the second spot among private residential projects to see a new psf-price peak during the period in review. Set a new psf-price high of $2,416 psf, it was when the developer sold a 1,076 sq ft, three-bedroom unit on the fourth floor for about $2.6 million on Dec 31. This was also the first unit at the development to transact at a price higher than $2,400 psf.
This beats the previous price record of $2,385 psf set in August 2022 when a 926 sq ft, two-bedroom unit on the fourth floor was sold for $2.2 million. Parq Bella has 20 apartments, ranging from two to four bedrooms, with floor plans ranging from 926 sq ft to 1,787 sq ft. It is expected to be completed by December 2026.
Parq Bella has experienced five new sale transactions last year at an average price of $2,347 psf. Since its launch in the third quarter of 2022, Parq Bella has already sold 19 of its 20 units (95%), at an average price of $2,244 psf, as of January 14.
Klimt Cairnhill, a freehold luxury project, was the only private residential development to see a new psf-price low during the period in review. The new psf-price floor came from the developer’s sale of an 829 sq ft, two-bedroom unit on the 24th floor for $2.55 million on Jan 3. This price translates to $3,077 psf.
Klimt Cairnhill, with 138 apartments, ranging from two to four bedrooms, is located along Cairnhill Road in Prime District 9. The final unit sold at Klimt Cairnhill is a two-bedroom apartment, making the project achieve 100% sales at an average price of $3,665 psf, based on caveats lodged. Launched in January 2022, it was previewed in August 2021.
Klimt Cairnhill also has two penthouses, one spanning 4,898 sq ft and the other 5,920 sq ft. It is expected to obtain its Temporary Occupation Permit in April this year.
Overall, Commonwealth Towers has recorded the highest average price increase among the three projects mentioned, which is expected to continue its upward trend in prices. With a strong demand for luxury properties, Parq Bella and Klimt Cairnhill also have the potential to maintain their high psf-prices.