Following H2 2023 ABSD hike,prime condo sales prices drop 

The analysis of prime-homes markets only includes units larger than 2,500 sq ft (sq m) located in highly-valued areas such as Districts 1, 2, 4, and 5 – central business district and Sentosa. Also included are Districts 9, 10, 11, and 12 – Tanglin/Orchard Road Area, Bukittimah and Holland Road Area, and Newton/Novena Locations.

The ABSD rates, which were doubled for foreign homebuyers to 60% in April, are a major factor in the decline in sales.

ABSD was able to cool the market by reducing sales of non-landed luxury homes.

The prime condo price fell 6.6% to S$2,302 in H2, compared with S$2,464 one year earlier, as sellers reduced their expectations of premiums.

Singapore’s high-end residential market suffered a crash in the second half 2023 due to the sharply increased Additional Buyer Stamp Duty (ABSD).

In H2 of 2023, 64 prime non-landed residential deals totaled S$503.9 millions. Prices averaged S$2,302 for each square foot (psf). It is less than half the amount of S$1.2bn in half-year deals that were completed at an average of S$2,625 per square feet (psf) during the previous half year.

There were 198 prime condominium deals in 2023 worth S$1.7 billion, which is a decrease of 33.4% from the S$2.5 Billion posted the previous year.

The total of 2023 deals was also significantly lower than the 479 deals that were recorded in 2021 and 298 in 2022.

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The prime landed market also had a muted year. The transaction volume was lower throughout the entire year because of limited salesable stock.

In H2 of 2023, S$2.1billion worth of landed properties were sold, down 26% from H1. The total year sales were S$5 Billion, which is 18 per cent below the previous record of S$10.2Billion set in 2021.

Only two Good Class Bungalows sold in H2 of 2023, down from eight sales in H1. The GCB sales market in 2023 recorded 10 transactions, less than half of the 20 GCBs purchased in 2022. This is also significantly lower than 60 sales in the year 2021. The average unit price of land fell by 42 per cent in H2 2023 to S$1,712 from S$2,952 in H1-2023.

SRI’s market report, released on Jan. 3 , indicated that there were 11 transactions of new ultra-luxury units last year. These are units that cost S$10,000,000 and more. There will be at least 19 sales of this type in 2022.

Top of the list in May was an 8,633 sq.ft. unit at Les Maisons Nassim. It sold for S$45.8 million, or S$5,213/sq.ft.

At least 36 transactions were above the S$10m threshold in 2023. This was down from 58 in 2022. The most expensive sale in September was a 10,710 sq. ft. unit in the Goodwood Residence, a freehold development in Bukittimah. This unit sold for S$32.25 million (or S$2,988/sq. ft.)

In the coming year, the prime condo price is unlikely to rise in a “significant” way. Instead, it may be marginally lower as the premiums continue to erode and homeowners are not as motivated as they were before.

Prices will be flat between 2024 and 2026, and are likely to fall at the lower end of that range.

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