The “bungalow in the sky” unit at the GuocoLand-developed Tanjong Pagar Centre is likely to become Singapore’s most expensive apartment.
It will test the endurance of demand for luxury property in the city-state – the part of the market that has taken the biggest hit from measures aimed at cooling down prices in recent years.
Prices for luxury homes in Singapore have fallen 15-20 per cent from a 2013 peak, according to JLL consultancy, part of the Jones Lang LaSalle global property services group. But JLL is starting to see the prospects of a turnaround – at least at the top end of the market – and is forecasting a 3-5 per cent increase in luxury prices this year, citing demand from both locals and foreigners who feel the market is bottoming out.
“A lot of people think Singapore is value for money because it has been downhill all the way – such a long winter,” said Mr V.R. Chandran, managing director of a real estate agency specialising in high-end homes. “Now, they feel it is the right time to come in.”
GuocoLand Singapore group managing director Cheng Hsing Yao said buying by foreigners has picked up since the start of the year – for one, at the developer’s high-end Leedon Residence project, near the 150-year-old Singapore Botanic Gardens.
The recent tightening of property market controls elsewhere, such as in Hong Kong and Australia, has played a part in attracting foreign demand to Singapore’s luxury property this year, Mr Cheng said.
Singapore introduced property price cooling measures to curb speculation, as did many other “hot property” cities in the region.
While some measures were relaxed slightly this year, the authorities warned last month that there would be no more rolling back for now.
Text: Straits Times