Chart of the Day: Luxury home sales collapsed from 2010 peak

Super rich snapped up resale posh homes as is evidenced by nearly 70% sale spike.

Savills Consultancy & Research however said that, the luxury property market in Singapore seems to have bottomed, with astute investors streaming back to snap-up value buys over the last few months.

Demand for luxury homes, it said, has been lacklustre since the onset of the eurozone debt crisis and the imposition of the Additional Buyer’s Stamp Duty (ABSD) in December last year. With the additional 10% stamp duty on corporate entities and expatriates purchasing their fi rst private homes, the luxury market was the hardest hit as overseas buyers made up nearly 43% of all prime home sales last year.

Here's more from Savills:

In demand for top-end homes have prompted some sellers to adjust their asking prices down. Compounded by a surge in luxury home completions over the past year, prices of some homes have softened recently with corrections between 10% and 30%.

Some developers have also handed out perks such as rental guarantees and furniture vouchers to attract
buyers.

With the rapidly narrowing price gap between homes in the suburban and prime areas, luxury homes are
beginning to appear attractive. Some older condominiums in the prime districts are also gaining their fair
share of attention, especially the larger, freehold units which are reasonably priced.