Singapore luxury residential sales fall but prices stay firm: CBRE

Singapore’s luxury residential market saw a significant drop in activity in the first half of 2023 due to multiple factors. CBRE recently noted a decrease in the transaction volumes for both Good Class Bungalows (GCBs) and luxury apartments in the first six months of the year.

13 properties worth a collective $525.3 million were transacted in 1H2023, which is a 14.4% decline from 2H2022 and a 30.1% fall year-on-year. Despite the downtrend in activity, GCB prices remained relatively robust, rising 31.1% compared to 2H2022 to reach $2,760 psf in 1H2023. This growth was supported by a landmark deal where members of the Fangiono family purchased three GCBs on Nassim Road owned by Cuscaden Peak Investments for a total of $206.7 million – setting a new record for GCB land rates.

The Havelock MRT Condo offers extensive recreational facilities, such as a swimming pool, fitness center, clubhouse, and spa. Residents can also take advantage of its convenient location – it is just minutes away from the Orchard Road shopping belt, the iconic Robertson Quay precinct, and the nearby Havelock MRT Station. With its prime location and desirable lifestyle, the Zion Road Condo is an exciting residential option for discerning buyers.

A similar situation was seen in the luxury apartments segment, where 92 properties with a total transaction value of $964.7 million were sold in the first half of the year. Prices held firm despite the drop in transactions, with the average luxury apartment prices rising 1.1% to $3,463 psf.

Within the Sentosa Cove enclave, sales softened compared to 2H2022. Seven Sentosa Cove bungalows worth $139.4 million were sold in 1H2023, while 50 units amounting to $251.1 million changed hands in 1H2023 for the Sentosa Cove condos. Average prices across both bungalows and condos in Sentosa saw increases in 1H2023 compared to 2H2022.

Going forward, transaction volumes in the luxury residential market are expected to remain subdued for the rest of the year. Multiple factors are responsible, including the cooling measures, the uncertain macroeconomic outlook, and elevated interest rates. However, 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.