Luxury Real Estate Trends in Singapore - A 3Q 2024 Snapshot
The luxury real estate market in Singapore continues to navigate an evolving landscape, driven by regulatory measures, shifting demographics, and a resilient demand for premium properties. The Prestige 3Q 2024 report sheds light on the current dynamics within this exclusive segment, encompassing both non-landed luxury homes and Good Class Bungalows (GCBs). Here's a closer look at the highlights.
Luxury Non-Landed Homes: Resilient Amid Challenges
The market for luxury non-landed homes showed remarkable activity, resembling pre-cooling measure levels. Key trends included:
Increased Interest from PRs and Citizens: Following the April 2023 implementation of a hefty 60% Additional Buyer’s Stamp Duty (ABSD) for foreigners, many opted to apply for Permanent Residency (PR) or citizenship, spurring demand in the luxury sector upon successful applications.
Transaction Metrics:
Approximately 55 units were sold in 3Q 2024, a slight 3.5% dip from 2Q but significantly higher than the post-cooling measure slump in 3Q 2023.
The total sales value was $407.7 million, reflecting a 15.5% decline quarter-on-quarter.
Ultra-Luxury Trends:Â While ultra-high-net-worth individuals (UHNWIs) remained cautious, some notable transactions occurred, including an unrecorded $13 million sale at Hilltops.
Key Projects and Prices:
Top-selling developments included 32 Gilstead, Nassim Park Residences, and Ardmore Park.
A standout transaction was a 4,198 sq ft unit at 32 Gilstead, sold for $14.71 million.
Rental Demand Surge:Â The rental market for luxury non-landed homes also gained traction, driven by global uncertainties and seasonal trends. Average monthly rents rose by 2.7% to $14,932, with 4-bedroom units seeing the highest demand and a 3.6% hike to $18,389.
Good Class Bungalows: A Market on the Rise
The GCB segment saw a notable uptick in activity, underpinned by high-value transactions:
Increased Sales:Â An estimated 12 GCBs changed hands in 3Q 2024, compared to 8 in the previous quarter. The total transaction value soared by 80.9% to $541.2 million, showcasing the enduring appeal of these exclusive properties.
High-Value Deals:
The most significant sale was a $93.9 million property at Tanglin Hill.
Two adjacent GCBs at Jervois Hill were sold for $131.4 million in a related party deal.
Rental Trends:Â While most GCB rentals remained below $30,000 per month, a top-tier deal at Chatsworth Park commanded $120,000 monthly.
Market Sentiment and Outlook
The luxury real estate market's performance in 3Q 2024 reflects a complex interplay of policy impacts, investor sentiment, and broader economic conditions. The resilience of both non-landed luxury homes and GCBs highlights Singapore's position as a global hub for affluent individuals seeking stability, exclusivity, and investment opportunities.
As global uncertainties persist, the demand for ultra-luxury homes in Singapore is likely to remain robust, fueled by its reputation for safety, strong governance, and premier lifestyle offerings.
Whether you're a prospective investor or an industry observer, the Prestige 3Q 2024 insights offer valuable perspectives into the evolving dynamics of Singapore’s luxury property market.
Contact Kelvin Lim at 93388999 for more information
Brand New Landed, Brand New Condo, Commercial and Industrials properties
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