Luxury condo sales pick up in Q2 as ultra-rich buyers help reverse 3 quarters of decline
In the second quarter of 2024, Singapore’s luxury condominium market saw a resurgence in activity, driven by the return of ultra-wealthy buyers. After three consecutive quarters of decline, sales for high-end condos have picked up, reflecting renewed interest from both local and international buyers. Developments like Watten House in Bukit Timah, Marina View Residences, and Newport Residences are among the properties attracting attention in this segment.
Data from Huttons Asia reveals that 57 luxury non-landed homes, each valued at S$5 million or more, were sold in Q2 2024. This represents a 7.5% increase from the previous quarter, though it remains 9.5% lower than the same period in 2023. The total value of these transactions reached S$482.5 million, marking a significant 26.2% rise from Q1.
Similarly, a report by Knight Frank highlighted that the total sales value for luxury non-landed homes surged by 28.2% in the first half of 2024, totaling S$736.7 million. This indicates that the market is regaining its momentum, almost returning to pre-cooling measure levels, as noted by Huttons Asia’s CEO, Mark Yip.
Alan Cheong from Savills Singapore also observed that Q2 saw 52 transactions exceeding S$10 million each, comprising 40 landed houses and 12 high-end apartments. This figure is comparable to the 53 deals recorded in the same period last year, suggesting a gradual recovery in buyer sentiment following recent increases in Additional Buyer’s Stamp Duty (ABSD) rates and anti-money laundering investigations.
Interestingly, permanent residents are now making their presence felt in the luxury market, likely due to the relatively lower ABSD rate of 5% on their first residential property. Knight Frank’s data shows that many buyers are focusing on “family-sized, ready-to-move-in units” for personal use, rather than investment.
A standout transaction in H1 2024 was the sale of a penthouse at Skywaters Residences for S$47.3 million, setting a new record for a 99-year leasehold property in terms of price per square foot. This sale underscores the ongoing interest from affluent foreign buyers in Singapore’s luxury real estate.
Meanwhile, the property market in Sentosa Cove also saw a surge in activity, with 101 transactions in H1 2024, up from 58 the previous year. Although median prices on the island have moderated slightly, the area remains a prime spot for luxury homebuyers.
Despite the recent uptick in transactions, the outlook for the luxury market remains cautious. Increased scrutiny on the source of wealth for ultra-high-net-worth individuals by the Singapore government could lead to some hesitation among potential buyers, who may consider alternatives like Hong Kong or Dubai.
Nicholas Keong from Knight Frank notes that the prime non-landed home market is still uncertain, impacted by ongoing cooling measures. With limited demand in the high-end segment, prices are expected to remain relatively flat, with potential decreases in the latter half of 2024.
Nevertheless, experts like Cheong from Savills believe that while the market may face volatility, the strategic locations and exclusive amenities of properties like those in the Core Central Region (CCR) will continue to appeal to both local and international buyers. The presence of developments such as Marina View Residences and Newport Residences further solidifies Singapore’s position as a desirable location for luxury real estate.
