Local luxury private home transactions fell 20% last year, market expected to rebound this year

Singapore's luxury private residential market has slowed, with transaction volumes declining by 20.2% last year. However, analysts believe that new prime residential launches this year are poised to stimulate demand, potentially driving transaction volume growth by up to 14.6%.

Latest research reports indicate that with few private residential projects launched in the Core Central Region (CCR) over recent months, pent-up demand for prime homes has been building. Consequently, new luxury developments slated for launch this year are expected to draw strong interest from both owner-occupiers and investors.

Several new prime private residential projects are slated to launch this year, including The Cairnhill, Marina View Residences, Skywaters Residences, Newport Residences, and One Leonie Residences. Among them, Skywaters Residences has generated the most buzz. Standing 63 storeys high at 305 metres, it will become Singapore's tallest building upon completion. The development will also feature super penthouses, and the prestigious selling point of residing in "Singapore's tallest residential tower" with panoramic views is expected to attract affluent buyers seeking an unparalleled living experience.

Upcoming new launches are expected to bolster market sentiment. An estimated 3,500 to 4,000 luxury private residential units are projected to find buyers throughout the year.

Amid evolving market conditions and steady demand for luxury homes, this forecast reflects a positive outlook for prime residential properties in the CCR.

Luxury Home Prices Unlikely to See Significant Growth

Last year, luxury private home transaction volume reached 3,491 units, comprising 1,448 new developer sales and 2,043 resale units. The top-selling new luxury launch in the first 11 months of last year was Leedon Green, moving 131 units at a median price of $2,942 per square foot (psf).

The second best-seller was Pullman Residences Newton, which shifted 126 units at a median price of $3,218 psf.

In the super-luxury segment, 11 new private home transactions crossed the $10 million threshold last year. These units came from prestigious projects including Les Maisons Nassim, Klimt Cairnhill, Dalvey Haus, Watten House, and Midtown Modern.

Latest research also reveals a drop in both sales volume and value for non-landed luxury homes. For the full year, total sales transaction value plunged by 33.4% to $1.7 billion, while transaction volume fell 33.6% to 198 units.

Market projections for non-landed luxury homes remain conservative this year. Luxury property prices are not expected to experience substantial growth and may even moderate due to softer demand—price movements are forecast to range between a 1% decline and a modest 2% rise.