ASIA
SINGAPORE
Singapore’s luxury property market is one of the most unique in the world – subject to tight government control, highly limited supply and near-perpetual demand among a variety of affluent constituents including locals, expats and private investors that operate with an institutional level of sophistication. “For a little island, we play an outsized role, economically, in the global context. Fortunes are made in Singaporean real estate,” says Harmeet Singh Bedi, a long-time finance and real estate executive who, along with partner Himmat Singh, launched Christie’s International Real Estate Singapore earlier this year. After a decade of torrid growth driven in large part by international real estate investment, Singapore imposed an Additional Buyer’s Stamp Duty (ABSD) of 60% in 2023 to limit foreign buying activity. The measure succeeded in cooling runaway price appreciation, although demand remains high, especially for luxury condos in the Core Central Region (CCR). Marketwide, the average sales price retreated a mere 1.3%, according to data from edgeprop.sg and Christie’s International Real Estate Singapore. However, in the CCR, the average price per square meter rose 5.2% to US$23,885 in 2Q24 vs. the year-earlier period. The ABSD is also driving up rental demand and pricing. “With the high ABSD making it less attractive for foreigners to purchase luxury properties, there is an increased demand for high-end rental properties,” Singh Bedi says. “Landlords seized this opportunity, recognizing the potential for lucrative rental yields.”
In addition, the narrowing price gap between the CCR and other regions has prompted affluent Singaporeans to invest in high- end properties.
Looking ahead, the government has recently released a number of prime sites for residential development, including locations along Orchard Boulevard and Upper Thomson Road. These projects are expected to attract significant interest from developers and buyers alike. Other trends to watch, according to Singh, include the growth of suburban areas beyond the CCR; a rise in the popularity of mixed-use developments and the convenience and amenities they offer for both local and expat buyers; and a growing emphasis on sustainable property development.
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