Luxury residential sales fall in 2Q2023; Les Maisons Nassim tops condo transactions

, more than 2017 price

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The luxury residential market in Singapore has seen a significant decline in sales following the implementation of cooling measures in April. According to data collected by Huttons Asia, in its 2Q2023 Prestige Report, an estimated 80 luxury homes were sold in the second quarter, down 34.4% from the 122 homes sold in the first quarter. The total value of these homes transacted in 2Q2023 was $657.3million, a 28.8% drop from 1Q2023’s $923.4million.

In terms of foreign buyers, research from OrangeTee & Tie revealed that US nationals topped the list for the first time since 2017. Evidently, US residents are immune from the higher ABSD due to an existing trade agreement between the two countries. The US accounted for 56 of the condos purchased in 2Q2023, more than double the figure of 51 for mainland Chinese buyers.

Topping the list of luxury transactions in 2Q2023 was the sale of an 8,633 sq ft unit in Les Maisons Nassim, to a US national for $45 million ($5,213 psf). Bolstering the overall transacted value for the quarter was the purchase of a portfolio of three Good Class Bungalows (GCBs) on Nassim Road for an estimated $206.7 million, a record high of $4,500psf.

In addition, the luxury rental market is expected to pick up in the months ahead, as foreigners may consider renting while waiting to gain permanent residency or citizenship.

Average monthly rents of luxury homes in the second quarter eased marginally by 1.9%, to $15,832. Huttons believes that rents may have plateaued, indicating a shift in market dynamics.

The dip in luxury residential sales follows the introduction of the cooling measures, however the increased demand in the rental segment is indicative of the resilience of the luxury market in Singapore.