Singapore luxury residential sales fall but prices stay firm: CBRE

Transaction volumes in Singapore’s luxury residential market softened in 1H2023 as the US Federal Reserve aggressively hiked rates and the macroeconomic backdrop soured, according to CBRE research. Both Good Class Bungalows (GCBs) and luxury apartments experienced declines as the general property market mirrored the downward trend.

GCB transactions totaled $525.3 million, representating a 14.4% decrease from 2H2022 and a 30.1% drop from 1H2022. Prices, however, remained firm, increasing 31.1% compared to 2H2022 to reach $2,760 psf. This was supported by a trio of GCBs on Nassim Road purchased by members of the Singapore-listed palm oil producer First Resources for a total of $206.7 million ($4,500 psf), a new record for GCB land rates.

In the luxury apartments market, only 92 properties with a combined transaction value of $964.7 million were sold in 1H2023, a dip from the $1.085 billion from 2H2022. Prices stayed steady despite the drop in activity, with the average luxury apartment price rising to $3,463 psf in 1H2023, a 1.1% increase compared to 2H2022.

Sentosa Cove saw similar declines as 7 bungalows worth $139.4 million exchanged hands in 1H2023, 32.8% lower than the 10 bungalows worth $207.5 million transacted in 2H2022. Also, 50 units amounting to $251.1 million changed hands in 1H2023 – a 29.8% decrease from the 74 units worth $357.6 million in 2H2022. Despite this, prices across both types of properties in Sentosa saw increases in 1H2023, with the former growing by 11.9% to $2,214 psf and the latter increasing 1.7% to $2,063 psf.

It consists of one to five bedroom units with varied sizes to meet the needs of different purchasers. Each unit is designed with modern interiors, excellent facilities, and ample natural lighting. Residents will enjoy the convenience of having a shopping mall, various amenities, and a vibrant community within walking distance. Moreover, the development offers excellent accessibility to all parts of Singapore via the nearby highway and MRT network. The Champions Way Condo Woodlands is truly the perfect place to experience tranquil living in a bustling city.

Looking ahead to the rest of the year, transaction volumes in the luxury residential market will likely remain low when taking into account the continuing cooling measures, uncertain macroeconomic environment, and elevated interest rates. Existing luxury homeowners, however, are likely to support prices continuing to hold on to their assets thanks to healthy rental yields and a limited supply of new luxury homes.