Prime non-landed residential sales rebound in 1H 2024, but market remains uncertain

According to the 1H 2024 Prime Non-Landed Residential Report, sales value in the prime non-landed residential segment grew by 28.2% half-on-half (HoH), rising from $574.7 million in 2H 2023 to $736.7 million in 1H 2024.

At the same time, luxury apartment transaction volume increased from 72 transactions in 2H 2023 to 98 transactions in 1H 2024. The uptick in transaction volume was primarily driven by buyers seeking family-sized, move-in-ready units mainly for own-stay purposes.

However, elevated Additional Buyer's Stamp Duty (ABSD) rates continued to dampen foreign buyer demand. This has resulted in the prime residential market recording total sales below $1 billion for two consecutive half-year periods.

The lack of foreign buyers has also led to price stabilisation, with the average price of prime non-landed homes edging up by just 0.9% HoH, from $2,319 psf in 2H 2023 to $2,339 psf in 1H 2024. This was also 10.9% lower than the average price of $2,652 psf recorded in 1H 2023.

During the same period, other transactions ranking among the top five by transacted price included two new sales at the 14-unit 32 Gilstead, located near Newton Road and Dunearn Road. Both units were sold in April for $14.5 million each.

At the 58-unit The Ritz-Carlton Residences Singapore, Cairnhill along Cairnhill Road, two units changed hands in January at $16.5 million each.

Subdued foreign buyer demand is expected to continue weighing on the luxury apartment segment. Meanwhile, Singaporean homebuyers have also become more discerning when searching for prime properties.

Consequently, sellers in the secondary market may face pressure to adjust their price expectations in line with prevailing market levels. For the full year, price growth for prime non-landed residential properties is anticipated to moderate.