|
Getting your Trinity Audio player ready...
|
Singapore’s private home market showed notable shifts in Q3 2024, characterised by moderated prices and evolving sales dynamics driven by limited new launches and cautious buyer sentiment. Despite short-term corrections, luxury homes for sale remain resilient within a turbulent economic landscape.
Luxury Home Sales Market Overview
Singapore’s private home prices dropped by 1.1% in Q3 2024 compared to the previous quarter, marking the first decline in over a year, according to PropNex Research. While this may seem worrisome, the simple fact of the matter is that the decrease was due to fewer new property launches and reduced buyer interest during the lunar seventh month, a traditionally slow period in real estate. Despite this quarterly dip, prices still rose by 1.1% for the first nine months of 2024, though this was slower than the 3.9% increase seen during the same period in 2023.
Landed vs. Non-Landed Private Homes
In the last quarter, Singapore’s luxury property market showed contrasting trends between landed and non-landed homes across sales for luxury homes. Landed property prices experienced a significant dip, falling 3.8% quarter-on-quarter (QoQ), marking a stark reversal from the 1.9% rise in the second quarter. This decline was attributed to a broader slowdown in demand, compounded by high borrowing costs and a reduced volume of high-value transactions. The Good Class Bungalow (GCB) market, a subset of landed properties, bucked this trend with increased transaction volume, recording 12 deals compared to eight in the previous quarter, with total sales value surging by 80.9% to $541.2 million.
Conversely, non-landed luxury homes, such as prime condominiums, saw a milder 0.3% decline in prices QoQ. Despite this, the segment faced a 3.5% drop in sales volume. Rental demand for high-end condos, particularly larger units, remained strong, with rents for four-bedroom luxury condos rising 3.6% during the quarter. Analysts noted that foreign demand remained subdued due to stringent additional buyer’s stamp duties, impacting higher-priced transactions in prime districts.
Overall, while landed homes experienced more pronounced price corrections, the non-landed segment retained relative stability, driven partly by robust rental demand but constrained by macroeconomic and policy factors.
The relatively strong performance of non-landed private homes also varied slightly by region, with overall prices dipping only 0.3%. The Rest of Central Region (RCR) saw a slight 0.2% price rise thanks to strong demand for mid-tier developments. However, prices in the Core Central Region (CCR) fell by 1.5% due to fewer sales of high-end luxury homes. Meanwhile, the Outside Central Region (OCR), known for its family-friendly communities, experienced only a 0.1% decline, demonstrating its stability despite challenging market conditions.
Sales Activity Highlights
A mix of new project launches and selective resale transactions dominated sales activity in Q3 2024. Kassia in the Outside Central Region (OCR) led the primary market, with 164 units sold at an average of $2,017 per square foot (psf). Its combination of contemporary designs and accessibility to urban hubs resonated with buyers. Similarly, Pinetree Hill and Hillhaven, situated in prime locations with modern amenities, each moved over 80 units, showcasing the demand for projects offering lifestyle-centric living.
In the resale segment, transactions fell 7% to 3,535 units due to rising interest rates and seasonal factors such as the Hungry Ghost Festival, which traditionally dampens buyer enthusiasm. Nevertheless, several notable deals reflected sustained interest in established developments. For instance, Treasure at Tampines, a mega-development in the OCR, saw 60 units change hands at an average of $1,706 psf, indicating robust demand for properties offering value and family-friendly features. High-end resale properties in the Core Central Region (CCR) also saw activity, including transactions at Ardmore Park and Leedon Residence, which cater to affluent buyers seeking exclusivity and premium locations.
The mixed performance across segments highlighted an increasingly selective market where well-located, competitively priced developments outperformed, while macroeconomic factors continued to weigh on overall activity.
Emerging Luxury Home Sales Trends
Looking ahead, developers are expected to ramp up new launches in Q4 2024, including high-profile projects such as Meyer Blue and Nava Grove. PropNex projects that new private home sales could reach 5,000 and 5,500 units by year-end. This aligns with anticipated Federal Reserve interest rate cuts, which could improve buyer sentiment.
An emerging trend involves developers integrating sustainable and wellness-oriented features into new developments to appeal to environmentally conscious buyers. Smart home technology, energy-efficient designs, and eco-friendly construction methods are becoming standard in premium developments, making these markers signs of new trends in luxury homes.
Investment Considerations
Despite the current market softness, Singapore’s real estate fundamentals remain strong. Factors such as limited land availability, high construction costs, and strict development regulations continue to support long-term property value appreciation. The city-state’s political stability, transparent legal framework, and position as a global financial hub further strengthen its appeal to international investors.
Real estate investors should closely monitor upcoming launches, particularly in the CCR and RCR, which offer attractive rental yields and capital appreciation potential. Engaging with a trusted real estate professional can provide critical market insights and facilitate informed investment decisions.
As Singapore’s private luxury home market recalibrates, strategic investment opportunities emerge. Buyers and investors keen on capitalising on these trends should engage trusted real estate professionals for timely market insights and tailored property advice.
