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Luxury non-landed resale volume grows 17.6% q-o-q in 1Q2024: Huttons Asia

By Nicholas Lam

/ EdgeProp Singapore |

May 7, 2024 2:47 PM SGT

The largest GCB deal last quarter, in terms of absolute price, was the sale of 15 Ford Avenue, a 19,554 sq ft GCB, for $39.5 million.

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The luxury non-landed resale market saw 40 deals done in 1Q2024, a 17.6% q-o-q rise in volume compared to the 34 deals in 4Q2023. In total, the market recorded a total transaction volume of $282.9 million in the luxury resale market over the first three months of this year, which is 4.2% higher than the $271.6 million transacted in 4Q2023.

These are signs that the luxury non-landed market is stabilising, says Mark Yip, CEO of Huttons Asia. He adds that geopolitical tensions appear to have convinced foreign buyers to buy a home in Singapore, as the city-state is still seen as a safe haven.

In terms of absolute price, the largest deal in the resale luxury market last quarter was the sale of two units in The Ritz-Carlton Residences. Each unit spanned 3,057 sq ft and was sold for $16.5 million. This translates to a rate of $5,397 psf, a new high for the development. The units were bought by the chairman of Suzhou Dongshan Precision Manufacturing Co and his wife.

Other top-selling luxury non-landed homes last quarter were in landmark projects such as Hilltops, Ardmore Park, Watten House, Nassim Jade, The Laurels, The LadyHill and Grange Residences.

On the other hand, the rental market for luxury homes saw 569 units on the market in 1Q2024, a 3.6% q-o-q increase from 4Q2023, but a 2.6% y-o-y drop compared to 1Q2023. Despite the increase in supply, rental prices rose by 6.5% in 1Q2024, supported by a 36.5% jump in rents for four-bedroom units over the same period.

The factors behind this increase parallel the resale market, and the recent bump in rents is likely attributed to ultra-high-net-worth individuals (UHNWIs) relocating to Singapore, says Yip.

Meanwhile, the Good Class Bungalow (GCB) market remained relatively quiet last quarter with just five transactions — the same number as the preceding quarter. However, the total transactional value of the GCBs sold in 1Q2024 dropped 10.6% q-o-q to $118.4 million.

The largest GCB deal last quarter, in terms of absolute price, was the sale of 15 Ford Avenue, a 19,554 sq ft GCB, for $39.5 million. This translates to a price of $2,020 psf.

Tenants in the GCB rental market remained cautious, seeking out deals at below $30,000 per month. The top rental deal for the quarter was in Tanglin Hill with a monthly rent of $120,000.

The outlook for the luxury homes market remains optimistic for the remainder of 2024, says Yip. He expects luxury resale transactions to increase over the next few months with four units already sold in April at 32 Gilstead, a boutique project along Gilstead Road. Two more luxury projects, Newport Residences and Skywaters Residences, may be launched in the upcoming months

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Luxury non-landed resale volume grows 17.6% q-o-q in 1Q2024: Huttons Asia

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