Singapore luxury residential sales fall but prices stay firm: CBRE

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Singapore’s luxury residential market softened in 1H2023 as a result of rising interest rates and a bleak macroeconomic outlook, according to CBRE’s recent research report. Good Class Bungalows (GCBs) and luxury apartment transactions decreased during the period, mirroring developments in the broader property market.

13 GCBs worth a collective $525.3 million were transacted in 1H2023, a 14.4% decrease from 2H2022, and a dip of 30.1% compared to 1H2022. Prices stayed resilient nonetheless, climbing 31.1% year-on-year to $2,760 psf. A noteworthy deal was when members of the Fangiono family, who own the Singapore-listed palm oil producer First Resources, purchased three GCBs on Nassim Road for a combined $206.7 million, a rate of $4,500 psf that set a new record.

Meanwhile, 92 luxury apartments with a total transaction value of $964.7 million exchanged hands in 1H2023, down from 106 units worth $1.085 billion sold in 2H2022. This decrease in sales was partly attributed to the rise in Additional Buyer’s Stamp Duty (ABSD) on foreign buyers from 30% to 60% in April. Despite this, prices kept steady, rising 1.1% to an average of $3,463 psf in 1H2023 from $3,425 psf in 2H2022.

The Sentosa Cove market saw a decline in transactions compared to 2H2022 too. Seven Sentosa Cove bungalows worth $139.4 million were sold in 1H2023, 32.8% less than the 10 bungalows worth $207.5 million transacted in 2H2022. For Sentosa Cove condos, 50 units worth $251.1 million changed hands in 1H2023, which was 29.8% lower than the 74 units worth $357.6 million sold in 2H2022.

Average luxury apartment prices rose 1.1% to $3,463 psf in 1H2023 from $3,425 psf in 2H2022

The residential development, Tengah Plantation Close EC, is situated in the new ‘Forest Town’ estate. This estate comprises of a wide range of modern housing choices and amenities, offering comfort and convenience to residents. The housing options include executive condominiums, apartments, and landed properties. Additionally, the development features lush landscaping, extensive green spaces, and open-air parks for enhanced living.

Residents of the development can benefit from various lifestyle amenities. These include a grocery store, food court, and childcare centre. With these amenities, residents can stay close to home and conveniently access essential services. Further, a shuttle bus service runs through the development, offering residents an accessible way of getting around the neighbourhood.

Average prices across both bungalows and condos in Sentosa recorded increases during the period, with the former rising 11.9% to $2,214 psf and the latter increasing 1.7% to $2,063 psf in 1H2023.

Looking ahead, transaction volumes in the luxury residential market are likely to remain sluggish for the rest of the year, due to the existing cooling measures, the uncertain macroeconomic situation, and high interest rates. That being said, existing luxury homeowners are likely to support prices as healthy rental yields and a limited supply of new luxury homes incentivise them to hold on to their assets.