Luxury Condo Market Activity Nears Pre-Cooling Measure Levels

Activity in the luxury condominium market picked up on the back of steady demand. Report data indicates that 57 luxury non-landed residential units—defined as condominium units in the Core Central Region (CCR) spanning at least 2,000 sq ft and priced at $5 million and above—were sold in the second quarter of 2024, representing a 7.5% quarter-on-quarter (q-o-q) increase.

The total transaction value for these homes reached $482.5 million, up approximately 26% from $382.4 million in 1Q2024. The stronger sales performance was attributed to the gradual return of ultra-high-net-worth individuals (UHNWIs) to the market. Activity in the luxury non-landed residential segment has almost returned to levels seen prior to the property cooling measures.

The most expensive luxury condo transaction in 2Q2024 was the sale of a penthouse at the 190-unit Skywaters Residences. The 7,761 sq ft unit transacted for $47.34 million ($6,100 psf).

Skywaters Residences is part of The Skywaters, a mixed-use development on the site of the former AXA Tower in Tanjong Pagar. Slated for completion in 2028, the development was the best-selling luxury non-landed project in 2Q2024.

Rental transactions in the prime condominium market also registered an uptick in 2Q2024, rising 12.5% q-o-q. However, rental rates remained relatively flat. Although demand saw a modest recovery, tenants generally remained cautious given the broader economic backdrop.

Despite the rebound in luxury condo deals in 2Q2024, analysts remain cautious about the outlook, noting that the market could soon encounter headwinds. Stepped-up scrutiny by the Singapore government over the source of wealth of UHNWIs is adding friction to the market.

These enhanced checks could prompt some UHNWIs to consider alternative wealth hubs such as Hong Kong or Dubai, potentially leading to a dip in luxury condo transactions in the second half of 2024.

Meanwhile, in the Good Class Bungalow (GCB) market, eight properties were sold for $299.1 million in 2Q2024. This exceeded the $118.4 million recorded across five GCBs sold in 1Q2024, with total sales value surging 152.6% q-o-q.

The higher transaction volume was supported by several marquee deals last quarter, likely facilitated by narrowing price expectations between buyers and sellers.

The largest GCB transaction in 2Q2024 was the sale of a property in the Bin Tong Park GCB Area. Occupying a land area of 28,111 sq ft, the home reportedly fetched $84 million ($2,988 psf on land area) in April. The buyer is understood to be the daughter of a Chinese steel and nickel tycoon.

The second-largest GCB deal was a property along Jervois Hill that changed hands for $58 million, or $3,843 psf based on a land area of 15,094 sq ft. The buyer is reportedly a family member from one of Indonesia's largest conglomerates.

In the leasing market, the majority of GCBs rented out in 2Q2024 commanded monthly rents below $30,000. The highest GCB rental deal of the quarter was for a property in Queen Astrid Park, which was leased for $75,000 a month.