SINGAPORE: Prices for Good Class Bungalows and luxury apartments in Singapore are holding steady, although there’s been a dip in transaction volumes lately, according to the latest report from property consultancy CBRE released on Tuesday, March 26.
The Business Times reports that in the latter half of 2023, there were fewer transactions for luxury apartments and Good-Class Bungalows (GCBs) than in the previous months. However, despite this decline, prices for these upscale properties have remained stable, providing a silver lining for sellers and investors alike.
For Good Class Bungalows, there were only nine transactions valued at S$202.05 million in the second half of 2023, marking a significant drop from the preceding period.
The transaction decline is attributed to various factors, including rising interest rates, global economic uncertainties, and increased scrutiny of money laundering activities since August 2023.
Despite the decrease in transaction volume, the average prices of GCBs have seen a notable increase year-on-year.
This suggests that while demand may have softened, the intrinsic value of these properties is holding firm. Additionally, asking rents for GCBs have adjusted to align with market realities, reflecting a broader trend in the landed rental index.
Luxury apartments have also witnessed a similar pattern. Although transaction numbers decreased in the latter half of 2023 due to policy changes, such as the doubling of Additional Buyer’s Stamp Duty for foreigners, prices have generally remained resilient.
Luxury apartments in Singapore’s Core Central Region, those larger than 2,000 square feet and sold for S$2,500 psf and above, have shown consistent pricing despite decreased transactions.
Despite the overall slowdown, there have been pockets of activity, particularly in new project launches.
The launch of Watten House in November 2023 saw healthy demand, indicating that well-positioned properties can still attract buyers even in a subdued market.
Ms Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, remains optimistic about the long-term outlook for luxury apartments.
She believes that Singapore’s business hub status will continue attracting investors seeking a “safe haven to park their wealth”, providing a stable foundation for the luxury property market.
On the other hand, Sentosa Cove properties have experienced a decline in transaction volume, with only two bungalows sold in the latter half of 2023.
The two bungalows sold for S$35.66 million, marking a 74.4% decline from the first half’s transaction value of S$139.39 million, when seven bungalows changed hands.
Despite the lower sales volume, prices for Sentosa Cove bungalows have remained relatively firm, with average prices rising by 15.8% year on year to S$2,470 per square foot in 2023. /TISG
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