Singapore Luxury Residential Figures H2 2022

–Following a record 2021, GCB sales volumes fell, largely constrained by limited supply available for sale and a widening buyer-seller price gap. The slowdown in sales was more pronounced in H2 2022 amid faster-than-expected interest rate hikes and a worsening macroeconomic backdrop. Average prices grew 10.1% in 2022.

–H2 2022 continued to see GCB demand from newly naturalised citizens and key executives of traditional businesses, while the active buying by digital economy entrepreneurs last seen in 2021 remained absent.

–GCB transaction activity could stay subdued for most of 2023 until interest rates stabilise and there is more clarity in the macroeconomy.

–Sentosa Cove properties saw sales pick up in H2 2022 compared to H1 2022, following the reopening of Singapore’s borders in Apr 2022 and a new condo launch. Full year volumes were still marginally down from 2021 as average prices edged up. Average Sentosa bungalow prices increased 9.1% in 2022.

–Luxury apartment sales volumes fell marginally in 2022 compared to a record 2021, underpinned by the return of foreign buyers following the full reopening of Singapore’s borders and continued buying by ultra-high net worth individuals and families. Average luxury apartment prices rose 6.1% to $3,328 psf in 2022.

–Despite weaker economic conditions and interest rate uncertainties, the return of Chinese buyers and Singapore’s safe haven status could provide some support to the luxury property market in 2023.