The latest report from Edmund Tie & Company (ETC) highlights a nuanced landscape for Singapore’s luxury home market in the second half of 2024. Whilst the number of transactions for luxury landed homes fell from 43 in the first half to 36 in the second, the total transaction value rose to $750m (S$1.02b) from $625m (S$0.85b). This suggests a shift towards higher-value deals, particularly in the Good Class Bungalow (GCB) segment, which saw sales jump by 126.6% compared to 2023.
Luxury detached houses remained the dominant force, accounting for 75% of landed home transactions. The average transaction quantum for these homes reached $25.1m (S$34.16m), the highest in five years. Notably, a GCB in Tanglin Hill set a record with a land rate of $4,550 (S$6,197) per square foot.
In contrast, the non-landed luxury home segment experienced a slight decline in both transaction volume and value, with 16 transactions totalling $160m (S$216.9m), down from $197m (S$267.6m) in the first half. Despite this, developments like Ardmore Park and Park Nova continued to attract interest, with Park Nova achieving near-record prices.
Foreign demand for luxury homes showed a slight increase in volume but a decrease in transaction value, reflecting a preference for prime locations. Non-permanent residents remained largely absent due to high Additional Buyer’s Stamp Duty (ABSD) barriers.
Looking ahead, ETC anticipates continued momentum in the luxury home sector, bolstered by economic activity and potential interest rate cuts in 2025. The GCB market is expected to see increased investor confidence, whilst new Singapore Permanent Residents could drive activity in the non-landed segment.
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