Luxury residential sales fall in 2Q2023; Les Maisons Nassim tops condo transactions
Luxury residential sales fall in 2Q2023; Les Maisons Nassim tops condo transactions
The luxury residential market in Singapore has taken a hit since the introduction of cooling measures in April of this year. The Additional Buyer’s Stamp Duty for foreigners was doubled to 60%. This drove down transactions in 2Q2023 compared to the same period in 2022.
Huttons Asia’s 2Q2023 Prestige Report shows that an estimated 80 non-landed luxury homes were sold in the second quarter of this year, for a total value of $657.3 million. This resulted in a 34.4% decrease in the number of homes sold, and a 28.8% reduction in total value transacted, when compared to the first quarter.
Interestingly, despite the hike in ABSD, buyers from the United States made up the majority of foreign purchasers in the luxury residential market. This is according to OrangeTee & amp; Tie, which reports that US buyers accounted for 56 condo purchases in 2Q2023, replacing Chinese buyers who had been the biggest buyers in recent years.
US buyers are accorded the same stamp duty treatment as Singapore citizens, given the trade agreement between the two countries.
Les Maisons Nassim saw the biggest transactions in 2Q2023, including the sale of a 8,633 sq ft unit to a US national for $45 million – $5,213 per sq ft. This was the top non-landed luxury sale of the quarter.
Residents of Orchard Boulevard Condo can also enjoy a variety of retail and shopping spots, such as the renowned Orchard Road, 313@Somerset mall, and Takashimaya Shopping Centre. Furthermore, the condominium is connected to major expressways like the Central Expressway and Pan Island Expressway, making it easily accessible from any part of the city. All these amenities and facilities make Orchard Boulevard Condo an ideal choice for anyone looking for an ideal place to call their home.
More luxury properties were also leased out in the second quarter, although average monthly rents decreased slightly by 1.9%.
The Good Class Bungalow market was quiet in the second quarter, with an estimated seven GCBs sold. However, the total value transacted was a record $392.3 million – 195% higher q-o-q and 34.8% higher y-o-y.
This was largely attributed to the sale of a portfolio of three GCBs on Nassim Road for $206.73 million, to the family behind Singapore-listed palm oil producer First Resources, who also reportedly purchased another Nassim Road GCB for $88 million ($3,916 psf).
While cooling measures may continue to weigh on transaction volumes in the luxury residential market, there could be increased demand in the rental market, as foreigners look for longer-term stays while waiting to be granted permanent residency or citizenship.