An unnamed Chinese national is paying a record price for an apartment in the Nassim. (source: SRX)
The boss of Singapore-based entertainment firm Cityneon Holdings is in the process of selling his apartment on the city’s posh Nassim Road to a Chinese national for S$20 million ($14.6 million), according to CBRE, as demand for luxury homes remains strong despite cooling measures.
The unnamed mainland national has exercised an option to purchase a four-bedroom apartment in The Nassim condominium complex from Cityneon group CEO Ron Tan, setting the highest price recorded so far in the entire residential development at S$4,915.21 per square foot.
“An opportunity like this is hard to come by, considering that there are so few four-bedroom units above 4,000 square feet available in the market for sale and in a move-in condition,” said Tricia Ang, the agency’s vice president for residential services in Singapore. “The owner has spent a great amount of time and effort to make the apartment even more unique, ensuring each living space is complemented with an appropriate statement piece.”
CBRE’s research head for Southeast Asia, Tricia Song, expects luxury homes prices to continue rising this year due to strong demand, limited supply and rising renovation costs, even with cooling measures in place.
Price Markdown
The apartment in The Nassim — a low-rise residential block at 18 Nassim Hill developed by CapitaLand — has a total gross floor area of 4,069 square feet (378 square metres) to account for one of the 55 units in the entire freehold development.
Cityneon group CEO Ron Tan
Tan, whose company transformed from an events firm into a global intellectual property specialist, has done major improvements as part of his exit plan for the unit. Renovations include placement of several statement pieces, a whisky bar and a customised wine storage display cabinet, among otters.
The seller bought his unit in February 2018 from Kheng Leong Company, a private real estate firm belonging to the family of UOL and UOB tycoon Wee Cho Yaw, for an undisclosed sum, based on an account by EdgeProp.
After completing renovations, Tan put the apartment on the market in February for S$22.5 million or S$5,530 per square foot, with the transaction representing an 11 percent markdown from that original asking price.
Song said the deal broke the previous record in the same condo development, when a smaller condo spanning 3,122 square feet changed hands for S$4,165 per square foot last October.
The Chinese buyer will be joining other ultra-wealthy individuals on Nassim Road, including the wife of the founder of Nanofilm Technologies International, who paid S$128.8 million for a 32,159 square foot good class bungalow last year, as well as Stephen Riady, executive chairman of SGX-listed builder OUE Group, who bought his mansion in August 2019 for S$95 million.
The apartment was freshly renovated before being put on the market. (source: CBRE)
The Nassim condo development has eight blocks of low-rise premium condos completed in late 2015 by Singaporean builder CapitaLand, with Kheng Leong having purchased 45 units in 2017. The complex is a few minutes’ walk from the Tanglin lifestyle hub and a 15-minute drive to the Orchard Road shopping belt.
CBRE declined to disclose the buyer’s identity.
Prices Up for Luxury Homes
CBRE’s Ang said the increased additional buyer’s stamp duty (ABSD) imposed in December has not had a material impact on the luxury residential market, as transactions worth at least S$10 million have barely dipped this year.
She said there were 15 luxury homes that transacted in the first four months of the year, nearly unchanged from the 16 properties that changed hands in the same period last year.
“The pandemic has also driven demand for such large homes as more people work from home and may also require additional space for their children to attend home-based learning,” Ang said. “Notably, even with the hike in ABSD, Singapore luxury property remains attractive to foreigners.”
Data from the Urban Redevelopment Authority shows that sales of new private homes in Singapore’s core central region — where most premium and luxury homes are located — increased for the second straight month in April with 206 units sold, up 35 percent from March.
“Now that Singapore has reopened its borders, we have noticed viewing activity picking up, and see greater demand for such luxurious residential properties from foreign investors,” Ang said.
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