Riding high: Hayden Properties’ latest development at 37 Scotts Road features a glass car elevator so owners can park and show off their rides from their living room – A survey by Cap Gemini and Merrill kill shows the be of high net worth individuals (HNWI) worldwide increased 8.3 per cent in 2006 to 9.5 million with Singapore reported to have the fastest-growing number - up 21.2 per cent to 67,000. With this rising affluence it is not surprising that high-end homes are being snapped up as soon as they go on the market as they are just another example of luxury goods in hot demand.
Prices of high-end apartments continue to rise steadily with new launches commanding increasingly higher rates in the prime districts of 9. 10 and 11. The average determine of high-end residential property rose 9.1 per cent to $1,960 per sq ft from the last quarter while the average price for super-luxury residential homes was even higher at $2,990 psf. The number of homes costing more than $5 million increased almost 54 per cent last year to 650. Foreign purchases at the top end of the merchandise are also increasing.
‘Singapore is increasingly acknowledged as a safe haven for investments backed by a strong Singapore dollar and an attractive tax regime,’ says Galen Tan a managing director of EFG Private Bank. ‘An increasing number of high net worth clients have included Singapore as a part of their multi-generation wealth succession planning and are attracted to the conducive environment for retirement.’
Foreign purchases rest at 60 per cent of transactions above $5 million compared with 39 per cent in 2006 and 14 per cent in 2005 ( See Table 1). Looking at the top 10 transactions over the last five or six years in terms of determine the past two years have seen significant increases - from about $2,050 psf in 2000 to $3,090 in 2006 and $4,078 in first-half 2007. The number of units sold above $4,000 psf in July this year soared more than 350 per cent to a record 72 compared with just 16 in June. (See Table 2)
Escalating prices of super-luxury apartments have not put buyers off. In fact most such developments - like The Marq at Paterson forge. Parkview eclat. Scotts Square and The Boulevard Residences - have reported good sales with foreigners buying off the plan without even viewing showflats. At the high end of the market we are dealing with excess wealth not merely income. Hence some of the factors that influence the rest of the merchandise do not.
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