Luxury home sales drop in 1Q24

SINGAPORE: Luxury non-landed home transactions saw a steep drop in the first quarter of 2024, with the total number of sales declining by 34.3% quarter-on-quarter to 46 units, according to a recent report by Huttons. This significant reduction in sales has raised concerns about the strength of the luxury real estate market in Singapore.

However, experts noted that the launch of the major project, Watten House, helped to bolster sales during this period. Despite the overall decrease, several luxury projects saw a notable level of interest from buyers, suggesting that the demand for high-end properties has not entirely dissipated.

The Watten House project, which drew significant attention during its launch, was one of the main contributors to the luxury home sales in the first quarter.

Alongside Watten House, other projects that featured in the top-selling luxury non-landed category were The Ritz-Carlton Residences Singapore Cairnhill, Hilltops, Ardmore Park, Nassim Jade, The Laurels, The LadyHill, and Grange Residences.

Huttons highlighted that if the new sales from these project launches were discounted, the total number of transactions would be 40, indicating a 17.6% increase quarter-on-quarter. This suggests that despite a lower overall volume, the resale market remained resilient.

Additionally, the report pointed out that the value of transactions in the resale market saw a slight increase. The total resale transaction value rose 4.2% quarter-on-quarter, reaching $282.9 million in the first quarter of 2024. This uptick in resale activity further underscores the stability and attractiveness of the luxury real estate market in Singapore.

Huttons also commented on a possible reason behind this trend. “The heightened geopolitical tensions appeared to have convinced buyers to buy a home in Singapore, often seen as a haven,” the firm stated.

This observation aligns with the common perception that Singapore’s political stability and strong legal framework make it a safe and attractive destination for property investment.

While the luxury property market experienced a challenging start to the year, the launch of new projects and the resilience of the resale market suggest that the sector retains considerable potential.

It remains to be seen how the market will evolve throughout the rest of 2024, but the solid performance of key projects perhaps suggests that interest in luxury real estate in Singapore persists.