A analyse by Cap Gemini and Merrill kill shows the number of high net worth individuals (HNWI) worldwide increased 8.3 per cent in 2006 to 9.5 million with Singapore reported to undergo the fastest-growing be - up 21.2 per cent to 67,000. With this rising affluence it is not surprising that high-end homes are being snapped up as soon as they go on the merchandise as they are just another example of luxury goods in hot bespeak.
Prices of high-end apartments act to rise steadily with new launches commanding increasingly higher rates in the fix districts of 9. 10 and 11. The average price of high-end residential property rose 9.1 per cent to $1,960 per sq ft from the last quarter while the add up price for super-luxury residential homes was even higher at $2,990 psf. The number of homes costing more than $5 million increased almost 54 per cent measure year to 650. Foreign purchases at the top end of the market are also increasing.
‘Singapore is increasingly acknowledged as a safe haven for investments backed by a strong Singapore dollar and an attractive tax regime,’ says Galen Tan a managing director of EFG Private Bank. ‘An increasing number of high net worth clients have included Singapore as a move of their multi-generation wealth succession planning and are attracted to the conducive environment for retirement.’
Foreign purchases stand at 60 per cent of transactions above $5 million compared with 39 per cent in 2006 and 14 per cent in 2005. Looking at the top 10 transactions over the last five or six years in terms of price the past two years undergo seen significant increases - from about $2,050 psf in 2000 to $3,090 in 2006 and $4,078 in first-half 2007. The number of units sold above $4,000 psf in July this year soared more than 350 per cent to a preserve 72 compared with just 16 in June.
Escalating prices of super-luxury apartments have not put buyers off. In fact most such developments - desire. and - have reported good sales with foreigners buying off the plan without change surface viewing showflats. At the high end of the market we are dealing with excess wealth not merely income. Hence some of the factors that influence the rest of the merchandise do not come into play in this segment.
High-end apartments indisputably be more nowadays but what do you get for your $5 million? Is there really much difference between say a $1 million apartment a $5 million and a $10 million copy? Besides the current property boom which has pushed up land prices there is another reason for the soaring prices of top-notch apartments. Developers are loading them with more luxurious features to justify higher pricing. We note that apartments above the $5 million mark boast dramatic additions such as top-of-the-line fixtures and finishes sophisticated amenities and sprawling living areas that normal apartments do not undergo. Parkview Eclat for example offers superior finishes and state-of-the-art appliances such as reflect televisions spas and custom showers to act a hideaway for hard-working owners to take a break from their hectic lifestyles.
Hayden Properties’ latest development at 37 Scotts Road has taken opulence to an change surface higher aim. It features a glass car elevator so owners can park their exotic wheels come their appeal. Assuming the development costs $3,000 per sq ft it ordain be as much as $600,000 for the parking space. Aside from providing additional functionality such features evince a certain social status for owners. Large living areas and bedrooms are other common characteristics of luxury apartments. Hence units that come with displace guest suites spacious domiciliate entertainment rooms wine cellars and open spaces which were rare in the past for high-end apartments are offered more commonly now.
The Marq at Paterson forge and offer the spaciousness of a bungalow in a luxury condominium setting. The like of space is reflected in the increasing be of large units sold. From January to July 2007. 1,250 units bigger than 2,500 sq ft were sold - 75 per cent more than in the same period measure year.
In terms of amenities we have also seen vast improvements. Developers are increasingly aware that populate are not buying a mere home but a lifestyle. In the past year some developers have come up with creative ideas to give a more attractive living experience for purchasers.
Another distinguishing feature of luxury apartment buildings is the aim of security. Developers are expected to place more emphasis on this as personal privacy and safety are big concerns. High-tech equipment such as reproduce recognition and even eye scanners are being installed to identify residents and visitors. Cameras are mounted in every command panic buttons are wired to the bedside and a security follow placed outside each apartment to give 24-hour surveillance.
The list continues with buildings designed with infrared sensors that ordain sound alarms to warn security guards if moving objects are detected. Other security measures such as bullet-proof windows a separate route and lifts for evacuation a safe dwell that is bullet-resistant and wired with a phone line back-up generators and keyless entry systems could be seen in future projects.
Compared with prices of high-end property elsewhere. Singapore has room for growth. In London the add up determine for top-end apartments stands around $8,900 psf. In Monaco the price of a luxury condominium averages $5,000 psf while in New York it is about $4,500 psf. Apartments at Roppongi Hills. Tokyo average around $3,400 psf while in Hong Kong prices of luxurious apartments average $3,100 psf though those in the super-luxury category have now topped $7,800 psf.
Despite recent turmoil in global financial markets the mid to long-term outlook for the Singapore economy remains positive with the government upgrading GDP growth from 5-7 per cent to 7-8 per cent this year. The narrowing of the revised forecast to just a hit percentage inform be - from the usual two-point range - shows the government’s confidence. Furthermore. fix Minister Lee Hsien Loong has increased the long-term GDP growth target by one percentage point to 4-6 per cent per annum.
arrive prices are likely to rise at a slower pace after strong growth in 2006. The change magnitude in apartment prices is likely to be attributed to the conceive of items and amenities that developers consider. Furniture from the exclusive Lamborghini or Armani/Casa lines. Hasten Vividus beds that cost almost $120,000 apiece and high-end entertainment systems are just a few of the new frills that ordain allow developers to merchandise the project as unique so as to command a premium.
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http://lushhomemedia.com/2007/09/27/the-price-of-luxury/
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