As of January 31, the average price attained was $4,061/psf

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The sales gallery was reopened at Klimt Cairnhill on Jan 3 — following closing for six weeks, which saw the three showflats being renovated the showflats Low Keng Huat Low Keng Huat, one of the property developer in the 138-unit luxury condominium located on Cairnhill Road has closed on 18 sales. The total in units sold at 25 (28.4%) out of the 88 units that have been released up to date. The median price was $4,061 as of Jan 31st.

Alvin Teo, executive director of Low Keng Huat, says Singaporeans comprised 25% of the buyers and permanent residents accounted for another 10%. A further twenty-five% is foreign-owned buyers coming from Southeast Asia, namely Indonesia, Cambodia, Myanmar and Vietnam.

But, it was Chinese nationals that drove the growth in Klimt Cairnhill since the start of the year. They made up 40% of buyers, according to Teo. There’s been a rise in the interest of Chinese buyers after travel restrictions were lifted in China on January 8 following a three-year Covid-19 lockdown.

“Many among these Chinese buyers are relatively new in Singapore,” says Dominic Lee PropNex’s director of its luxury department. “They require large apartments that have freehold tenure as well as an ideal district address. There’s not much new stock of these properties available at present. That’s why many of the huge, four-bedroom apartments located at Klimt Cairnhill were taken up by Chinese buyers.”

Since Covid-19, the demand for larger homes has grown. The last time Klimt Cairnhill previewed in August 2021, it was only the larger units that included threeand four-bedroom apartments as well as penthouses — were offered to the market for auction.

Big units in demand
There are two penthouses in Klimt Cairnhill There is a 4,898 square feet six-bedroom duplex located on the 36th floor and a 5,290 square foot duplex with six bedrooms located on the 35th floor and the 36th floors.

The simplex penthouse was auctioned off at the end of November in 2021 to a buyer who paid $26million. With a price of $5,309 per square foot basing it on the floor area it established a new record for the area of development.

Two parties are competing for the 5,920 square feet duplex penthouse: a local and one Chinese national. The penthouse is priced above $5,300 per square foot The price of the total ticket of the penthouse will be greater than 30 million. PropNex handled the transaction.

Low Keng Huat offered multiple-unit buyers the possibility of combining two four-bedders that are on floors to meet the growing demand for spacious units with more than 4,500 sq ft of area. Both units include six bedrooms with ensuites and will be serviced by an internal staircase and private lift. In addition, Klimt Cairnhill offers two kinds of four-bedroom units ranging from 2,056 sq ft and 2 368 sq ft — the combined units will be duplexes with 4,112 sq feet and 4,736 sq ft and 4,736 sq ft, respectively.

Seven of the four-bedroom units that were sold were to buyers who bought multiple units, including those who purchased the units with family members. Certain buyers were offered the option of combining their units. The buyers were mostly Chinese or Southeast Asian buyers, says Low Keng Huat’s Teo. As of now no one has accepted the offer to combine the two units.

Ken Low, the managing partner of SRI Ken Low, who is the managing partner of SRI, has no reason to be surprised by the interest in the four-bedroom apartments at Klimt Cairnhill after the firm sold the first unit, which was 2,056 sq feet on the 33rd level to $7.72 million ($3,755 per square foot) on the 7th of January. The buyer is also believed to originate from China. “Attention has been paid towards Klimt Cairnhill after the large units in Park Nova, which is a 54-unit complex Park Nova was closed,” says Low. In fact, the Les Maisons Nassim which is home to only 14 units which have the smallest sizes with a floor area of 6,049 sq feet and prices starting from $35 million has sold 11 units so far. The most recent sale on the market at Les Maisons Nassim was for an area of 6,179 square feet on the second level , which sold for $36 million ($5,827 per sq ft) in accordance with the caveat that was lodged.

“Larger than average unit sizes’
The units at Klimt Cairnhill, it is not only the four-bedroom apartments that are large, however, the three- and two-bedroom apartments are “larger than the average” according to Teo. The two-bedroom apartments at Klimt Cairnhill are sized at 829 square feet, and two bedrooms plus study units that are 893 square feet. Three-bedroom units come in two sizes: 1,432 sq feet and 1,496 sq feet.

Since the beginning of the year Teo reports that there’s increased interest for two-bedroom apartments from local buyers, particularly young couples or families with children. Teo attributes this to Klimt Cairnhill’s location near schools which include Anglo-Chinese Schools (Junior) situated within a distance of 1km; Eton- House International Preschool, just two minutes away, as well as Anglo-Chinese school (Barker Road), St Joseph’s Institution and Singapore Chinese Girls’ School just a short drive away.

Given the increased interest in the two-bedroom types, Low Keng Huat is releasing all 50 units of two- and two-bedroom-plus-study apartments when it relaunches Klimt Cairnhill on Feb 6.

Two-bedroom units will cost from $3,200-$3,600 per square foot. The total cost of 829 sq feet, two-bedroom apartments start at $2.65 million for the floor with the lowest price to below $3 million on the top floor. The two-bedroom plus study units with 893 sq feet will have prices ranging between $2.86 million to $3.2 million.

The return to the ultra-rich Chinese?
The high demand for large apartments and penthouses in most desirable areas was evident in 3 Orchard By the Park. According to reports the report states that a Chinese buyer bought two duplex penthouses within the Prestige Penthouse Collection. Each duplex measures 6,092 square feet and features five bedrooms and the pool. The interiors are created by Formwerkz to the cost of $1.7 million per.

The buyer is planning to merge the two penthouses duplex. The price of the purchase is thought to be in the vicinity of $60,000 for each penthouse that is the price per unit that ranges from $4,963 to $5.029 psf. According to sources in the market, ERA was the broker for the sale.

“This may be the time in which the luxury market will see more notable deals thanks to the return of super-rich Chinese,” says Mark Yip the CEO of Huttons Asia. “This could not be included in the caveats since it isn’t required to file an objection. Certain deals be governed by a different arrangement or are bought under an international passport.”

Foreign buyers, particularly those from China are seeking to buy units for personal for their own use, according to Doris Ong, deputy CEO of ERA Singapore. “They are looking for units that they can live in within a short time. A majority of them have completed their research prior to when arriving in Singapore. They’re pretty sure they have an idea of what they would like to purchase. The buying decision is much quicker.”

Narrowing price gap draws Singaporean value-seekers
ERA’s Ong believes that the two-bedroom units are attractive to those looking for to be part of District 9. The two-bedroom units offer an entry cost that is more affordable for young couples or those who are looking to be near relatives, she adds. “Their parents could afford to purchase the unit for them or help in the down amount.” She also says the higher rates of interest will not be a major reason for those who are buying in this market.

Another reason for the increase in interest in condominium developments within Central Region (CCR) is the fact that Core Central Region (CCR) is the decreasing price gap in comparison to city fringe or Rest of Central Region (RCR) projects. In the entire this calendar year, median cost for RCR developments was at $2,242 per square foot as compared to CCR project was at $2,806 per sq ft. This shows a gap of 25.2% in 2022, contrasted with 42.7% over the past decade, from 2012 until 2021, according to Huttons Asia.

In December, brand new RCR projects were sold at the median price of $2,648 per sq ft as opposed to CCR projects were valued at $2,886 per sq ft which brought the price difference in between these two groups reducing to 9%. “If prices remain at a steady level in 2023, this dwindling gap in price would remain as there would be more buyers seeking to purchase a unit from CCR projects. CCR project, as it could provide better value,” says Huttons’ Yip.

This may be the reason for the increase in sales of other freehold developments in the CCR which were launched earlier. A good illustration can be found in the Perfect Ten located in Bukit Timah, which was launched three days following the December 2021 round in cooling procedures. The 230-unit freehold project located on Bukit Timah Road, in District 10’s most sought-after district is more than 81.3% sold to date. The average price between December 2021 through December 2022 was $2.995 per sq ft. In the 10 units that were sold this year the average price jumped to $3,207 per fsf.

Another project that was launched at the beginning of the year with a brand-new showroom and sales gallery. It is the Cairnhill 16. It has 39 units. Cairnhill 16.. Since the 5th of January 8 units were sold. The majority of buyers are believed to be local Singaporeans purchasing to move into the project is scheduled to completion in the 4th quarter of 2023. The units sold on average were $2,682 per square foot according to caveats that were lodged. “Cairnhill 16 has smaller unit sizes , and is more affordable quantum costs that attracted Singaporean homeowners and investors,” says SRI’s Low.

He attributes a portion of the increased demand for housing at Cairnhill 16 Perfect Ten and Klimt Cairnhill due to the change to the ministry of education’s principal one-school registration process this year. “With the fewer spaces available to children in the Phase 2A which includes alumni, parents who wish their children to go to their old school might have decided to purchase an apartment in a condominium within a radius of 1km from the school to boost the likelihood of their children attending,” adds Low.

In the wake of Chinese wealthy and Singaporean buyers scouting properties in the CCR Low Keng’s Teo believes that “the timing of the launch of Klimt Cairnhill is much better for buyers” because of the less time-consuming project’s completion time and the Temporary Occupation Permit expected by the late 2024 or 2025.