The ABSD hike causes prime condo sales prices drop in H2 2023
In May, the top-selling unit was an 8,633 sf freehold apartment at Les Maisons Nassim. This unit sold at S$45m or S$5,213/sf.
The number of resale transactions that exceeded S$10 million in 2023 has dropped from 58 to 36, down from the 58 transactions recorded in 2022. In September, a 10,710 sq ft unit of the Goodwood Residence freehold in Bukit Tiam was sold at S$32m or S$2,988psf (see amendement note).
The prices of prime condos will likely not rise “significantly” this year. There may even be marginal drops, as premiums continue eroding and homeowners no longer feel the same urgency.
Prices are expected at a flat rate, “ranging between minus 1% and 2% in 2024. Most likely, the prices will be at the negative end.”
The total number of prime condo deals valued at S$1.7 billion in 2023 was 198, down 33.4% on the S$2.5 million recorded last year.
The 2023 total was also far lower than 2022’s 298 deals and 2021’s 479 transactions.
Singapore’s premier residential property market is expected to suffer a downturn in the second quarter of 2023 as a result of an increase in Additional Buyers Stamp Duty.
In H2 2020, there were 64 residential non-landed transactions with a total of S$503.9M. The average price per square foot was S$2,302. This is less that half of the previous six-month period, which saw 134 deals totaling S$1.26 billion with an average S$2,625 sqft.
The analysis of the Prime-Homes Market only counts units that are at minimum 2,500 square foot (sq. ft.) in size, located in the most valuable areas in Districts 1 and 2 – Sentosa and the Central Business District – as well as Districts 9 and 10 – Tanglin/Orchard Road and Bukit Timah/Holland Road and Newton/Novena.
The ABSD rates that doubled up to 60% for foreign homebuyers in April.
ABSD cooled down the high end market in conjunction with the mismatch between buyer and seller expectations.
In H2, prime condo prices dropped 6.6 per cent, from S$2,464psf one year before. Sellers lowered their expectations regarding price premiums.
SRI released a market report on Jan. 3, that indicated there were atleast 11 transactions last year for new ultra luxury condos – units that cost S$10,000,000.00 or more. In 2022, 19 of these sales will take place.
The prime land market experienced a year that was similar to the previous one. A limited amount of stock meant that the transaction volume was reduced throughout the year.
The H2 2023 sales of landed houses fell by 26 per cent compared to H1. Sales for the entire year totaled S$5billion, 18% lower than 2022. They were also 51.5 percent less than last year’s record high S$10.2billion.
Two Good Class Bungalows, (GCBs), were sold only in H2 2023 from eight transactions in H1. The GCB Market recorded 10 sales in 2020, less than half the 20 GCBs in 2022. It was also lower than the 60% of 2021. The average unit land prices fell 42 per cent from S$2,952 to S$1,712psf during H2 2023.
