Blog

Watten House Artists Impression 1

Prices of Singapore GCBs, luxury apartments remain stable as sales volume declines

According to CBRE on Tuesday (Mar 26), although transaction volumes for luxury apartments and Good Class Bungalows (GCBs) experienced a decline in the second half of 2023, prices in these segments remained stable.

In the latter half of 2023, there were nine GCB transactions totaling S$202.05 million, marking a 64.9 per cent decrease from the S$575.27 million recorded in the preceding six months. This downward trend continued from H2 2022, which saw a total transaction value of S$613.45 million. For the entire year of 2023, a total of 23 GCBs were sold, amounting to S$777.32 million, the lowest figure since 1996. Despite the drop in transaction volume, prices continued to grow, with an overall increase of 23.8 per cent year-on-year.

CBRE attributed the decline in sales to rising interest rates, global economic uncertainties, and the ongoing crackdown on money laundering since August 2023. However, it noted that despite the lower transaction volume, prices for GCBs remained resilient.

In the luxury apartment segment, defined as apartments in the Core Central Region larger than 2,000 square feet and sold for S$2,500 psf and above, the number of transactions declined in H2 2023. A total of 63 luxury apartments were sold, with a transacted value of S$579.65 million, down from the 92 units recorded in the preceding half-year, totaling S$964.67 million. For the full year of 2023, there were 155 transactions worth S$1.54 billion, a decrease from the 223 units worth S$2.18 billion in 2022.

However, there was a quarter-on-quarter increase in sales in Q4 2023, driven by healthy demand at the new project launch of Watten House. Average luxury apartment prices rose by 2.2 per cent to S$3,417 psf in 2023 from S$3,343 psf in 2022, supported by limited premium stock.

Tricia Song, CBRE’s head of research for Singapore and Southeast Asia, expressed optimism about the long-term outlook for luxury apartments, citing Singapore’s strong fundamentals as a business hub, which continue to attract investors seeking a safe haven for their wealth.

Despite lower sales volume, Sentosa Cove properties maintained firm prices, with average prices increasing by 15.8 per cent year-on-year to S$2,417 psf in 2023.

The Business Times

Condo resale volumes post slight improvement in February amid CNY lull: SRX, 99.coSky EvertonTembusu Grand receives Strong Interest during PreviewGovernment gave grace period to 44 housing projects facing ABSD deadline within 2021 to 2023: Lawrence Wong
error: