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Luxury condo sales here pick up after 3 quarters of decline
Luxury condo sales here pick up after 3 quarters of decline, and buyers have returned to the high-end real estate scene, reviving the demand for premium living spaces within the community. The previous downward trend has now given way to a resurgence in sales activity, indicating a renewed interest in the city’s most exclusive residential offerings.
The luxury apartment market in Singapore experienced a resurgence in the second quarter of 2024, as the ultra-wealthy gradually returned to the city-state after a three-quarter decline, according to industry reports. Data analyzed showed that high-end, non-landed homes witnessed steady demand during the second quarter, with 57 units valued at $5 million or more changing hands. Although this represented a 7.5% increase from the previous quarter, it remained 9.5% lower than the second quarter of 2023.
The total value of these luxury, non-landed properties reached $482.5 million, a 26.2% rise from the $382.4 million recorded in the first quarter.
Similarly, another report on prime residential real estate indicated that the sales value of luxury, non-landed homes grew by 28.2% to $736.7 million in the first half of 2024, up from $574.7 million during the same period the previous year.
In the second quarter of 2024 saw 52 deals worth more than $10 million each, which is on par with the 53 transactions recorded in the same period in 2023. This suggests that the buying sentiment has gradually returned to the level before the negative impact caused by the latest increase in additional buyer’s stamp duty (ABSD) rates and the aftermath of the anti-money laundering investigations that began in 2023.
Permanent residents may also be entering the luxury property market, as they only pay 5% in ABSD for their first residential property. According to Knight Frank, the transaction volume increased to 98 in the first half of 2024, from 72 the year before, with buyers primarily seeking “family-sized, ready-to-move-in units” for their own stay rather than for investment purposes.
In Singapore’s prime central region, there has been a surge in high-end property transactions, with multiple luxury developments recording sales exceeding $10 million. This includes 32 Gilstead in Novena and Watten House in Bukit Timah.
Furthermore, the Sentosa Cove area, part of the central core region, witnessed a significant increase in activity, with 101 transactions in the first half of 2024, up from 58 a year earlier.
While median prices on the island moderated slightly to $1,801 per square foot in the second quarter, down from $1,999 in the first, the resale market saw at least nine non-landed private home deals worth $10 million or more during the same period. The most expensive transaction was for a 3,057 square foot unit at The Ritz-Carlton Residences Singapore, Cairnhill, which sold for $16.5 million or $5,397 per square foot in January. This sale marked the first time since June 2023 that prices in the prime residential market surpassed the $5,000 per square foot threshold.
The increased activity in the luxury real estate sector is attributed to a “modest” rise in foreign buyer interest for properties in the central core region, with this group purchasing 45 non-landed properties in the second quarter, up from 21 in the previous quarter.
In the second quarter of 2023, a total of 100 units were sold to overseas buyers, according to the report. Since then, the number of units purchased by foreign customers has remained stable.
Given the current limited demand in the high-end market segment, prices are likely to remain flat, fluctuating between a decline of 1% and an increase of 2% for the entire year, as sellers under pressure to sell in the resale market may adjust their expectations to align with prevailing market levels.
The desirability of these items has captured the interest of both nearby and distant customers. These products hold an undeniable allure that has drawn the attention of buyers from the local area as well as those from around the world.
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