The luxury residential market in Singapore took a hit following the imposition of cooling measures in April of 2023. According to Huttons Asia’s 2Q2023 Prestige Report, the volume of luxury non-landed homes sold fell to 80 units in 2Q2023, a 34.4% decrease quarter-on-quarter and a transacted value of $657.3 million, a 28.8% decrease quarter-on-quarter. In comparison, the 202 units sold in the first half of the year was valued at $1.58 billion, a 7.1% increase when compared to the corresponding period in 2022.
US nationals topped the list of foreign buyers of the luxury non-landed homes in 2Q2023 according to OrangeTee & Tie’s research report, replacing mainland Chinese buyers who had the top spot from 2017 to 1Q2023. 56 condo purchases made by US buyers were recorded in 2Q2023, lower than the 63 the quarter before, however surpassing the 51 purchased by China, halving from 1Q2023. This is due to the trade agreement between the US and Singapore, whereby American citizens are granted the same stamp duty treatment as Singaporeans, and thus the 60% hike in the Additional Buyer’s Stamp Duty does not apply.
Les Maisons Nassim topped the sales of luxury non-landed homes in 2Q2023, with the sale of an 8,633 sq ft unit to a US national for $45 million ($5,213 psf) in May being the top transaction. The Good Class Bungalow (GCB) market saw slower activity, with seven transactions worth $392.3 million, a 195% increase quarter-on-quarter and a 34.8% increase year-on-year. This was due to the sale of a portfolio of three Nassim Road GCBs for $206.7 million, a record $4,500 psf, by the family behind Singapore-listed palm oil producer First Resources.
Huttons predicts that transaction volume in the luxury residential market will further taper off with the cooling measures, and that this might result in increased demand in the luxury rental market. This is because foreigners looking to stay in Singapore for the long term may rent in the interim while waiting to be granted permanent residency or citizenship.
In 2Q2023, more luxury non-landed homes were leased out, though average monthly rents eased by 1.9% to $15,832, with early signs showing that rents may have reached a plateau.
The building also features a range of amenities to guarantee your comfort and security, such as a swimming pool, gym, sauna, and playground. Woodlands Condo is conveniently located in a vibrant neighbourhood close to transportation, dining, entertainment, shopping, and more. With luxury amenities and easy access to the city, residents of Woodlands Condo will surely be able to enjoy a modern lifestyle.
The luxury residential market in Singapore took a hit following the introduction of the cooling measures in April 2023, with fewer non-landed homes sold and leased out last quarter. However, the number of US nationals purchasing property remains resilient due to the existing trade agreement between the US and Singapore. Buyers from the US topped the list of foreign purchasers in 2Q2023, while Les Maisons Nassim recorded the four biggest transactions by absolute quantum last quarter.
Meanwhile, the Good Class Bungalow (GCB) market was slower in activity; while the transacted value increased significantly due to the purchase of a portfolio of three GCBs, transaction volume remained quiet.
Huttons predicts that transaction volume in the luxury residential market may further slow in the coming months as the cooling measures continue to take a toll, and suggests that this could result in an increased demand for luxury rental property, as foreigners look for a more long-term solution in Singapore.