Singapore prime non-landed home sales volume hits record lows since 2009

The total sales value from 184 transactions dropped 22.1% to S$1.4b in 2024.

According to Knight Frank’s recent report, there were 80 prime non-landed home sales in Singapore in H2 2024, totalling S$573.7 million, 27.1% less than the S$787.4 million in H1 2024. For the entire year, total sales value amounted to S$1.4 billion, a 22.1% decline from the S$1.7 billion in 2023.

“The annual total of 184 prime non-landed transactions in 2024 set a new record low (since 2009 when tracking started), and was also lower than the 298 and 206 transactions recorded in 2022 and 2023 respectively. The tepid transaction activity was mainly due to the dearth of foreign buyers in the luxury housing market segment as a result of the Additional Buyer’s Stamp Duty (ABSD),” the report said.

Here’s more from Knight Frank:

The decrease in transaction activity also translated to a 3.5% y-o-y fall in prime non-landed prices from S$2,319 psf in H2 2023 to S$2,237 psf in H2 2024. Nevertheless, homeowners continued to maintain premiums on asking prices.

The secondary market continued to form a larger proportion of the overall sales volume in H2 2024, due to the lack of new launches in the luxury housing market. Two new sales from 32 Gilstead topped the transactions based on price in H2, with unit prices ranging between S$3,431 and S$3,505 psf (S$14.4 million to S$14.7 million).

Outlook

Foreign professionals and expatriates who have turned to the leasing market due to the prohibitive ABSD, are unlikely to return to the buying market any time soon, especially with rents no longer rising and in some instances easing. Despite the fall of interest rates coupled with more new launches expected in 2025, demand would likely stem mostly from local homebuyers, selectively scouting for an ideal home for themselves or for investment.

With demand in the high-end market expected to remain soft until some of the more prohibitive measures are eased, prices are likely to remain flat between -1% and 2% in 2025.