2016 started with signs of interest returning to the prime residential market, led by the launch of a project in a prime location in March 2016, Cairnhill Nine. Cairnhill Nine is located on the fringe of upmarket retail corridor of Orchard Road. It saw a take-up rate of 66% within one month. In addition, 10 luxury homes worth over $10 mil each were also sold in Q1 2016.
This paper tracks the activity in the prime residential market as it responds to the cooling measures and changing market conditions. While it is still too early to claim that prime home prices have bottomed out, CBRE Research is of the view that the market’s acceptance that the government would not lift measures in the short term probably nudged buyers who are in two minds to decide on a purchase. Moreover, prime prices have softened by about 9% since 2013. Both factors resulted in the warm response to both newly launched projects and resale homes in Q1 2016.