Total prime non-landed home transactions slowed in H1

This was due to the initial impact of cooling measures.

The overall prime non-landed home sales slowed in the first half (H1) of 2023 when 163 transactions were recorded in the second half (H2) of 2022, the latest Knight Frank research revealed.

There was a state of pause in the second quarter, which was hit by the cooling measures, as the Additional Buyer’s Stamp Duty (ABSD) rate doubled from 30% to 60% for foreigner homebuyers.

“The demand for uncompleted homes remained evident with Les Maisons Nassim achieving top sales in the H1 2023, as two new units transacted between $5,213 psf ($45.0m) and $5,727 psf ($36.0m),” read the report.

The luxury non-landed home sales in H1 2023 also eased to $1.1b, posting a  “half-yearly” 23% in total sales value from H2 2022.

In the first six months of the year, 126 luxury non-landed homes were transacted, with 31 out of 48 sales in Postal District 4 (D4) coming from Sentosa. 

Slowing market homes

In the remaining months of 2023, Knight Frank predicts a drop in foreign homebuyer participation will affect the slowing market for prime homes.

“Together with the supply of new completions in the Core Central Region of about 2,640 units from April to December 2023, the government may perhaps consider easing some of the ABSD rates, perhaps for foreigners, so as to bring back activity to the prime housing segment once demand and supply balances out,” said Knight Frank.

It could also help in leveraging Singapore's growing reputation as a global wealth hub.

“In the meantime, the recent measures also resulted in potential sellers withdrawing their properties from the market, even though demand from wealthy locals, permanent residents and naturalised citizens remains,” read the report.