Luxury home sales in Singapore rise in value despite fewer transactions

SINGAPORE: Singapore’s luxury residential market experienced a notable rise in total transaction value in the second half of 2024, even as the number of deals declined. According to a report from ETC, the total value of luxury home sales increased by 10.8% compared to the previous half-year, reaching $1.24 billion. However, the number of transactions fell by 16.1% to 52 units.

The primary driver behind this growth was the surge in big-ticket landed property sales, particularly Good Class Bungalows (GCBs). The landed segment alone accounted for $1.02 billion across 36 transactions, representing the bulk of the luxury market’s value. While the number of landed property deals declined from 43 units in the first half of 2024, average prices soared by over 50% to $28.41 million per transaction.

GCBs, often considered the pinnacle of luxury housing in Singapore, played a significant role in the market’s growth. Detached homes made up 75% of all landed deals, with 18 GCB transactions contributing $780.6 million to the total value. Among the standout transactions was a record-breaking deal for a GCB at Tanglin Hill, which sold for $93.9 million. This set a new benchmark land rate of $6,197 per square foot (psf), surpassing the previous record set by a property on Nassim Road in 2023.

The most significant deal of the period was the sale of a GCB on Belmont Road for $131 million, making it the largest transaction in the second half of 2024.

While the landed property segment thrived, non-landed luxury homes saw a quieter market. Sixteen units were sold during the second half of the year, just one fewer than the 17 units in the first half. However, the total transaction value for non-landed luxury homes declined by 19% to $216.9 million, as there were no major sales comparable to the high-profile transaction at Skywaters Residences in the previous half.

Nevertheless, notable activity was recorded at Park Nova, where properties crossed the $5,000 psf mark. Early 2025 sales in the development even reached prices of $5,700 psf and $6,700 psf, reinforcing its appeal to ultra-high-net-worth buyers. Meanwhile, Ardmore Park remained a preferred choice, with four units sold in the second half of 2024, maintaining stable prices at around $4,000 psf.

Foreign interest in Singapore’s luxury residential market remained subdued. Eleven units were purchased by foreign buyers in the second half of 2024, a slight increase from 10 units in the first half. Despite this marginal rise, total foreign spending declined to $166.6 million.

The 60% Additional Buyer’s Stamp Duty (ABSD) for non-permanent residents (NPRs) continued to weigh heavily on foreign participation. Only two NPR purchases were recorded during the period, as the steep tax rate deterred many potential buyers.

Despite the challenges posed by regulatory measures, the resilience of Singapore’s luxury property market—particularly within the GCB segment—perhaps points to the continued demand from ultra-wealthy individuals seeking prized assets.