Singapore, 03 Apr 2023 Values of the 10 most expensive condominiums bought during the last residential property peak of 2013 have all fallen over the past decade, with one unit sold at nearly half of what it first went for.
That prices per square foot (psf) for these units have all tumbled from 2013’s high, despite rising prices for new properties in recent years, is a clear warning about the dangers of buying into markets that are spiking, said experts.
URA caveats showed that 16 condo units were sold at prices above the $5,560 psf record level in 2013, and most of these transactions took place in 2021 and 2022, noted Ms Christine Sun, OrangeTee & Tie’s senior vice-president of research and analytics.
In February, a 6,286 sq ft condo unit at Les Maisons Nassim was transacted at $5,727 psf, which shows that there are still buyers willing to pay top dollar for luxury properties now, she added.
In 2019, billionaire inventor James Dyson reportedly paid $73.8 million – or about $3,496 psf – for a 21,108 sq ft super penthouse at Wallich Residence at the top of Guoco Tower. He sold the unit at a loss of more than $11 million a year later.
There may also be other units bought at higher prices that were not reflected in URA’s caveats, said Ms Sun.