Foreign wealthy families relocate to Singapore, driving Q1 luxury home resale volume up 18%

Amid intensifying geopolitical tensions, more ultra-high-net-worth individuals (UHNWIs) are viewing Singapore as a safe haven for their wealth, driving a 17.6% quarter-on-quarter increase in non-landed luxury residential resale transactions to 40 units in the first quarter.

According to a recent report, the total resale transaction value of non-landed luxury homes in Singapore reached $282.9 million in the first quarter, representing a quarter-on-quarter rise of 4.2%.

The growth in sales volume may be attributed to heightened geopolitical instability, prompting more UHNWIs to regard Singapore as a safe harbour for assets.

However, if new luxury home sales and subsales are included, total luxury residential sales fell by 34.3% in the first quarter. Among these, new luxury home sales stood at just six units, down significantly from 34 units in the previous quarter. Nevertheless, the surge in new luxury home sales in Q4 last year was predominantly driven by strong take-up at Watten House.

The report revealed that the top three luxury projects by resale transaction price in Q1 were The Ritz-Carlton Residences, Hilltops, and Ardmore Park. The two highest-priced units were both from The Ritz-Carlton Residences, fetching $16.5 million each, or $5,397 per square foot. The buyers were reportedly Yuan Yonggang, chairman of Shenzhen-listed Suzhou Dongshan Precision Manufacturing Co., Ltd., and his wife, Wang Wenjuan.

In the luxury rental market, data from Huttons Group showed that 569 luxury units were leased in the first quarter, up 3.6% quarter-on-quarter but down 2.6% year-on-year.

Surge in rental demand for four-bedroom luxury apartments

Notably, rental demand for four-bedroom luxury apartments saw a substantial quarter-on-quarter jump of 36.5% and a year-on-year increase of 19.3%. Robust demand pushed rents for four-bedroom luxury homes up by 6.5% in the first quarter. This serves as an indication that UHNWIs are relocating their families to Singapore to steer clear of escalating geopolitical uncertainties.

As more UHNWIs relocate to Singapore and consider applying for permanent residency, luxury residential transaction volumes are expected to rise further.

On the new launch front, luxury boutique development 32 Gilstead, located along Gilstead Road, moved four units in April. Major luxury developments Newport Residences and Skywaters Residences are also slated to launch in the coming months.