Your search results

Revival of Singapore Luxury Housing Market in 2023

Posted by Jayson Ang on January 21, 2023

| 0

TLDR

The property market in Singapore has witnessed significant shifts in the past two years, with a surge in prices in the Outside Central Region (OCR) and Rest of Central Region (RCR) compared to the Core Central Region (CCR). Singaporeans lead the luxury real estate market, followed closely by Chinese buyers. The pandemic led to a decrease in foreign buyers from China, but as global economies reopen, a resurgence is expected. Despite challenges, the CCR market shows potential with growing interest from high-net-worth individuals. New launches have made CCR properties more accessible, narrowing the price gap with RCR. Local buyers can seize opportunities in the current market before potential price increases by foreign buyers. The impending rise in Additional Buyer’s Stamp Duty (ABSD) could impact investment demand, favoring local homebuyers. For personalized real estate advice and assistance in buying or selling, a strategic and data-driven approach can provide clarity and direction for your property journey.

Discover the Property Price Trends Across 3 Different Market Segments

The past two years have seen an incredible surge in the prices of private residential properties due to the various socio-economic repercussions of the Covid-19 pandemic, such as delayed construction and limited supply. This has resulted in a flurry of activity for new residential property launches, with some even shattering records with their prices.

The biggest transformation in the 3 real estate segments came from outside the heart of Singapore’s Core Central Region (CCR). Prices of non-landed private properties in the Outside Central Region (OCR) and Rest of Central Region (RCR) skyrocketed by 19% to 27% over the last two years, whereas non-landed property prices in the CCR rose steadily at a rate of 9%.

The sluggish rate of property appreciation in the CCR region can be linked to the decreased demand from overseas purchasers during the pandemic, combined with the December 2021 cooling measures, which raised the Additional Buyer’s Stamp Duty for foreign house hunters by no less than 10 percentage points.

Nationalities Of Prime Property Buyers

Singaporeans lead the pack as the top purchasers of luxurious real estate in Singapore, with Chinese buyers coming in a close second.

From 2017 to 2019, Chinese citizens comprised the largest proportion of foreign buyers for prime residential properties in Singapore, with 12.7% of the total new housing units purchased. However, during the pandemic from 2020 to 2022, this figure plummeted to a mere 5.8%.

As global economies begin to reopen in 2023, an influx of foreign property buyers from countries such as China could significantly drive up the demand for high-end properties in the CCR and potentially return it to pre-pandemic levels.

The proportion of CCR homes bought by foreign nationals had dropped during the pandemic, leaving much room for growth in this sector.

Proportion of CCR Primary Sales Buyers' Nationality

Unlock The Untapped Potential Of The CCR Market

From 2017 to 2019, prior to the outbreak of the pandemic, roughly 20-33% of primary CCR homes were purchased by non-permanent resident foreigners. In the three pandemic-ridden years, however, the number of primary market property sales dwindled to a mere 10-14.5%.

The growing economic instability around the world has attracted a large number of high-net-worth foreigners to Singapore, who are setting up family offices here and bringing their funds with them. Despite the higher Additional Buyer’s Stamp Duty imposed on foreign property buyers, Singapore still appeals to them as a safe haven and as a real estate asset for wealth storage.

As China’s borders open up, more Chinese expatriates are flocking to Singapore in search of work, life and investment opportunities – driving a surge in wealthy investors house-hunting in the CCR. As a result, the CCR property market is seeing a renewed interest.

Undiscovered Gems In The CCR

Singaporeans often overlook private properties in the prime market segment due to the notion that new launches in the CCR market are too costly. Yet, the last two years have seen an exponential rise in condominium prices in the OCR and RCR, which has been narrowing the price gap between private properties in the RCR and CCR.

The new launches in 2022 have made CCR properties increasingly accessible to local homebuyers, with median prices of housing units starting as low as $2,402 per square foot. What’s more, the majority of these CCR projects are freehold properties – a great incentive for those looking to invest in the area!

With the booming growth of property prices in the RCR, the median prices of new launches there are now comparable to those in the CCR. Therefore, savvy local buyers can snap up luxurious freehold developments in prime districts at an affordable cost – but they must be quick before foreigners arrive and push prices up!

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

Mandarin Top 5

Top 5 Reasons : Is It Still Worth It For A Foreigner To Invest In Singapore

Jayson Ang – January 24, 2025 –

Singapore, a small yet prosperous city-state in Southeast Asia, has long been an attractive destination for foreign investors. Its strategic...

Mandarin Top 5

Top 5 Best Instagrammable Spots in Singapore

Jayson Ang – November 7, 2024 –

Singapore, a vibrant and modern city-state, is known for its stunning architecture, lush green spaces, and colorful streets. With its...

Mandarin Top 5

Top 5 Factors : Why Singapore’s Luxury Property Market Still Has Room For Growth

Jayson Ang – December 5, 2024 –

Singapore's luxury property market has been experiencing significant growth in recent years, with private home sales in the Core Central...

All Buying Tips Opinion

Unlock the Secrets of Property Investment and Transform Your Financial Future!

Jayson Ang – September 30, 2024 –

TLDR The Singapore property market has experienced fluctuations, impacting private home prices. Understanding your financial capacity is crucial when considering...

All Blog Posts Opinion

What is Buyer’s Stamp Duty (BSD) in Singapore and How Does It Work?

Jayson Ang – February 14, 2023 –

TLDR When it comes to navigating the Additional Buyers Stamp Duty (ABSD) in Singapore, legal strategies are available to overcome...

All Blog Posts Buying Tips

What’s The Difference Between An Offer To Purchase And An Option To Purchase?

Jayson Ang – May 29, 2023 –

TLDR Understanding the crucial difference between an Offer to Purchase and an Option to Purchase (OTP) is vital when buying...

All Blog Posts Opinion

Unveiling the Truth: Why Freehold is Not Always the Optimal Choice for Property Investment

Jayson Ang – January 4, 2023 –

TLDR When it comes to investing in real estate in Singapore, traditional beliefs may not always hold true in today's...

All Blog Posts Buying Tips

Reach Your Goal of Owning a Flat Before You Turn 35 : Money-Saving Strategies

Jayson Ang – February 21, 2023 –

TLDR Jayson Ang provides valuable insights on money-saving strategies to achieve the goal of owning a flat before turning 35...

All Buying Tips

Crucial Facts : All First Time Buyers Need to Know

Jayson Ang – December 7, 2022 –

TLDR When it comes to property investment for first-time buyers in Singapore, careful planning and early action are key. Consider...

All Blog Posts Buying Tips

Avoid The Possibility Of Negative Cash Sales: Find Out How Much Your HDB Has To Appreciate To Steer Clear Of It!

Jayson Ang – January 31, 2023 –

TLDR When selling your property, watch out for negative cash sales that could leave you with no money after CPF...

Mandarin Top 5

Top 5 : Questions Should Investors Be Asking Before Investing In Singapore’s High-End Rental Market

Jayson Ang – February 1, 2025 –

Singapore's high-end rental market has been a hot topic of discussion among investors worldwide. With the city-state's robust economy, excellent...

All Blog Posts Buying Tips

Discover the Benefits of a SORA Home Loan in 2023: Why Consider SORA Interest Rates

Jayson Ang – May 17, 2023 –

TLDR The article discusses the transition from SIBOR and SOR to SORA as the new benchmark rate in Singapore's banking...

All Buying Tips Opinion

The Significance of Choosing the Right Condo: A Real-Life Tale of Two $1.8 Million Investments with Significantly Different Results.

Jayson Ang – August 13, 2024 –

TLDR When contemplating property investments in Singapore, consider various factors like rental performance, unit count, access to train lines, and...

All Buying Tips

Can Your HDB Flat Safeguard Your Retirement?

Jayson Ang – December 7, 2022 –

TLDR The HDB market has seen significant changes over the years, with many young owners looking to upgrade to private...

All Buying Tips Opinion Selling Tips

Property Market: Buyer’s Paradise or Seller’s Dreamland?

Jayson Ang – July 24, 2024 –

TLDR The property market in Singapore post-Covid has seen a surge in HDB and private property prices, with a noticeable...

All Blog Posts Buying Tips

Unveiling the Secrets: How Foreigners Can Buy Property in Singapore – 6 Essential Steps to Follow

Jayson Ang – December 19, 2024 –

TLDR Foreign investors find Singapore attractive due to its stable governance and transparent business practices. Foreigners, including Permanent Residents (PRs),...