Singapore luxury home market sees mild recovery in 1H, transaction value up 9.3% HoH

Amid an expanding economy and impending interest rate cuts, average transacted prices for both landed and non-landed luxury homes in Singapore recorded growth.

According to a luxury residential report for the first half of 2024, the average transacted price of landed luxury homes rose from around $16.7 million in 2H 2023 to $18.7 million in 1H 2024, representing an increase of about 12.1%. Over the same period, the average transacted price of non-landed luxury homes climbed by approximately 6.7%, rising from $14.6 million to $15.6 million.

Overall, total transaction value in the luxury residential market rose 9.3% half-on-half (HoH) to $1.05 billion in the first half of the year, with total sales volume standing at 59 units—largely holding flat compared to the 60 units transacted in 2H 2023.

Luxury homes refer to private homes in the Core Central Region (CCR) priced at $10 million and above, including Good Class Bungalows (GCBs).

The report revealed that sales volume for landed luxury homes reached 43 units in 1H 2024, up by one unit from 2H 2023, while total sales value climbed 14.7% HoH to $804 million.

Among them, detached house transactions jumped 39.1% HoH to 32 units, with total transaction value reaching $680 million. Semi-detached and terraced house transactions fell to 11 units, with total sales amounting to $124 million.

The largest landed luxury transaction occurred in Bin Tong Park, where a property sitting on a land area of 28,111 sq ft transacted for $84 million, translating to nearly $3,000 psf.

The report noted that, likely buoyed by strong domestic economic growth bolstering investor confidence, the luxury home market demonstrated resilience by achieving price growth while sustaining transaction volumes.

In addition, the average psf price of GCBs reached $2,138 in the first half of the year, the highest in four years since 1H 2020. A total of 12 GCBs were transacted in 1H 2024, with total transaction value reaching $360 million. Among these, 11 were located in District 10, with another in Chestnut Avenue.

In the non-landed luxury residential segment, transaction volume declined by two units HoH to 16 units in 1H 2024, with total transaction value slipping 5.14% HoH to $250 million.

The report highlighted that transactions exceeding an average of $5,000 psf remain rare; only 11 such deals have been logged since 2021, three of which were closed in the first half of this year.

The penthouse at Skywaters Residences, set to be Singapore’s tallest skyscraper, was transacted for $47.3 million, or $6,100 psf. The other two transactions were adjoining units at The Ritz-Carlton Residences Singapore, which changed hands for $16.5 million each, working out to $5,367 psf.

Foreign buyers show interest in luxury homes, but transaction volume remains modest

The report noted that the number of luxury condo units purchased by foreign buyers fell from 13 in 2H 2023 to 10 in 1H 2024, with total transaction value declining 12% HoH to $171.7 million. However, the average transacted price grew 14% HoH to $17.2 million. Among the 10 units, only the buyer at Skywaters Residences was a non-Permanent Resident (non-PR); the remaining buyers were all Singapore PRs, five of whom were from Mainland China.

Experts believe that the Additional Buyer’s Stamp Duty (ABSD) has effectively curbed non-PR foreign buyers from entering Singapore's luxury property market, and some prospective buyers may be looking to secure PR status before committing to a purchase.

Looking ahead, underpinned by economic expansion and anticipated interest rate cuts, Singapore’s luxury home market is expected to remain resilient in the second half of the year.

The report added that landed luxury properties will continue to benefit from limited supply as well as sustained demand from both local and foreign buyers. Non-landed luxury homes are projected to hold steady, supported primarily by prime locations and high-end luxury developments. While demand from foreign buyers is expected to remain muted, new PRs will continue to serve as a key pillar of support for the luxury residential market.