Prime Residential Sales Remain Firm in H1; High-Value Transactions Surge
Prime home sales in Singapore remained strong in the first half of 2024, surpassing figures from the second half of 2023 across all residential types in both sales value and transaction numbers.
According to a report by Knight Frank released on July 9, a total of 98 luxury non-landed homes were sold, with a total sales volume of S$736.7 million. This marks a 28.2% increase from the S$574.7 million across 72 transactions in the previous half-year period. The top luxury non-landed home transaction during this period was a penthouse unit at Skywaters Residences, sold for S$47.3 million at S$6,100 per square foot (psf).
Prime Non-Landed Market Outlook
Nicholas Keong, head of residential and private office at Knight Frank, noted that the increase in prime non-landed sales values was largely driven by buyers seeking “family-sized, ready-to-move-in units primarily for their homestay.” However, he also mentioned that the market remains uncertain due to the government’s property cooling measures. This was the second consecutive half-year period where total prime home sales value amounted to less than S$1 billion.
Landed Home Transactions
In the first half of 2024, 284 landed homes (each valued at S$5 million or higher) were transacted, compared to 263 in the prior half. The total sales value of these homes increased by 18.3% to S$2.6 billion from S$2.2 billion in the second half of 2023. Keong explained that many buyers chose to purchase older homes for reconstruction to suit their preferences, while others bought redeveloped homes from boutique developers.
High-Value Transactions
SRI’s head of research and data analytics, Mohan Sandrasegeran, highlighted a notable increase in landed property transactions priced at S$10 million and above. In Q2 of 2024, 38 such units were sold, up from 33 in the previous quarter. This rise in high-value transactions indicates a strong presence of affluent buyers seeking exclusive and luxurious residences.
Looking Ahead
Keong believes that landed homes priced at valuation or slightly below will continue to be quickly snapped up. He expects prices of landed homes to experience slight increases throughout 2024. Sandrasegeran echoed this sentiment, stating that the landed property market is poised for continued growth, supported by stable economic conditions.
Good Class Bungalows (GCBs)
Activity in the Good Class Bungalow (GCB) segment rose in H1 2024, with five transactions compared to only two in H2 2023. Keong noted that these included an S$84 million sale of a bungalow at Bin Tong Park. He expects more activity in the GCB space if economic conditions stabilize and interest rates are cut. SRI’s research showed at least 10 caveated GCB transactions during H1 2024, up from seven in the same period the previous year. However, Sandrasegeran emphasized that this data might not reflect the total number of transactions, as some high-value deals remain private.
Prime Location Projects
Prime location projects like Meyer Blue, Marina View Residences, and Newport Residences continue to attract interest from buyers seeking luxurious living spaces. These developments offer exclusive addresses and modern amenities, contributing to the vibrant prime residential market in Singapore.
