Market Analysis

Knight Frank Wealth Report 2022 reports that luxury residential markets around the world had a record-breaking year in 2021, with luxury homes becoming the preferred asset class for ultra-high-net-worth individuals (UHNWIs).

The Prime International Residential Index (PIRI 100), which analyzes and tracks the performance of prime prices in 100 cities and second home markets throughout the world, showed an increase of 8.4% in 2021. This is the highest annual increase in the value of the index since it was launched in 2008. Coming in first place is Dubai, with prime prices increasing by 44%. Moscow took second place at 42.4% and San Diego in third with 28.3%. The luxury residential prices in Singapore went up by 3.5%.

While the prime residential prices in Singapore have grown modestly by 3.5%, placing 70th out of 100 key global cities. Government policies to curb runaway prices were a major factor in Singapore’s moderate residential price growth.

The government has intervened in the housing market for the past decade to keep prices in line with household incomes and economic performance. As a result, according to Knight Frank, Singapore’s private residential market has remained stable despite external upheavals.

Singapore ranked 5th in a list of the most expensive cities to buy property in, with US$1 million (S$1.4 million) buying 35.4 sqm of prime property. In 2020, Singapore ranked in 6th place with US$1 million purchasing 36 sqm of prime property. Now the city-state is gradually closing the gap with New York (33.3 sqm).