Singapore residential investment sales down 11% to S$10.3b in 2023

The private sector drove the decline in sales.

Residential investment sales in Singapore ended 2023 strong with a transaction value of S$3.5 billion in Q4/2023, and according to Savills, this is on a par with the previous quarter. 

“Spurred by the ten GLS residential sites being awarded for S$6.3 billion, the residential sector achieved S$10.3 billion in 2023. However, it was still 11.3% lower than the S$11.6 billion recorded in 2022. The decline was due to quieter private sector activity,” the analyst said.

Here’s more from Savills:

Like the previous quarter, the majority (82.0%) of the sales value in Q4 was from the award of four GLS sites. This was made up of three private non-landed residential parcels and one executive condominium (EC) site, totalling S$2.8 billion. Among the three private non-landed residential sites, Clementi Avenue 1 drew the highest number of bids, at six, while the other two sites at Pine Grove (Parcel B) and Lorong 1 Toa Payoh each received three bids. 

In general, developers’ sentiment continued to be weighed down by concerns about global economic headwinds, elevated interest rates and falling new private home sales. 

In the private sector, investment sales remained subdued with only S$620.8 million of transactions. However, it was noted that three small private land parcels were sold in the quarter, including collective sales of the 7-unit Kartar Apartments at Thomson Road (S$18.0 million), two adjoining freehold landed plots at Gentle Road (S$30.9 million) and a residential redevelopment site on Sophia Road (S$33.6 million). 

Small and boutique developers have reoriented their interests to smaller sites in prime districts to mitigate the risk of the high land cost outlay and the hefty stamp duty payment if they can’t sell off all the units in the new project within five years. 

In addition, transaction activity for residential homes worth no less than S$10 million each shrank further in Q4/2023 with 25 landed houses and nine condominium units changing hands.