What super luxury means for a home; a penthouse

A good friend showed us a picture of her new house keys. She has just received them from a top 10 developer here in Malaysia. The current price of her home? 7 figure,starting with 1. Of course she was very happy and house warming may be a few months away, depending on her renovation. She is one of my richer friends. She has already budgeted a 6 figure amount for renovation and yet that six figure is not starting with the number 1. Both her husband and herself are just working professionals, both senior managers in multinationals. For the money she earned, her favourite form of investment would be property. Her husband who is a banker prefers stocks instead. Their investments are definitely working well and I think her next home should be a bungalow. She is not favouring a high-rise unit, regardless of the size or exclusivity. I have to agree with her view because she has stayed in landed properties all her life and she earns enough to continue to have the landed option. However, assuming one is super rich, perhaps those Ultra High Net Worth (UHNW) individuals, would they consider a high-rise?

What about a high-rise that once you buy, the world would know you immediately? There’s one opportunity to be unveiled soon. In Singapore, a new three-storey penthouse, complete with a private pool on the 64th floor will be put on market for S$100 million (RM313 million). The full article in channelnewsasiais here: Singapore penthouse on sale for S$100 million, a test for luxury market’s recovery. The name of the place is Wallich Residence and it is the tallest building in Singapore.The penthouse is in Tanjung Pagar (my office is there too. ) It does seem that the market is still facing lots of turbulence but this is what JLL is saying. It is forecasting a 3 to 5 percent increase in luxury prices within 2017. Maoin reason is because potential buyers , both local and foreigners believe the prices are bottoming. (Actually, even for Malaysia, something similar is happening. Refer here: Propertyguru: Property prices bottoming out already, maybe. ) That full article is here: Most expensive penthouse for sale in Singapore. 

I personally think this most expensive home has little connection to the super luxury property market. I mean it would not affect the average or even the median property price because this is just one unit. As for the buyer, the reason to buy is simply because the one buying should be buying it because he could afford it. It need not be because he wanted it as a place to stay. It can certainly be a vacation home. Since the home is RM313 million and assuming the person needs to fork out 20 percent of the downpayment, that’s RM62 million. If this is just 5 percent of the person’s wealth, then he would have a net worth of RM1.2 billion. If he is a Singaporean, that’s just SGD383 million of surplus in the bank (does not seem too hard). If the person is from Britain, then the penthouse would become even more cheaper, in currency terms. So, yes I disagree that this would test the luxury property market. The test needs to be on a much larger scale, not because of one unit. Happy following and I am curious too about the potential buyer.

written on 14 July 2017

Next suggested article: Changing trends not necessary bad, we must change with them 

 

One thought on “What super luxury means for a home; a penthouse

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s