Luxury home sales continue to stumble

Romesh NavaratnarajahSeptember 29, 2015

Luxury apartments

Luxury home sales continued to stumble in the third quarter this year with 112 luxury apartments sold, down from 162 units during the same period a year ago and 188 units in Q3 2013, reported The Straits Times citing analysis from DTZ Research.

Luxury apartments are defined as units with a floor area of at least 2,000 sq ft and located in Districts 9 to 11.

The consultancy stated that high-end apartments also accounted for a smaller proportion of total secondary non-landed sales.

In Q3 2015, luxury apartments accounted for 10 percent (73 units) of secondary non-landed sales, down from the previous quarter’s 12 percent (147 units) and 12 percent (97 units) in Q3 last year.

“Sales for the segment are slower primarily because of the Additional Buyer’s Stamp Duty (ABSD), as the amount is higher given the quantum,” said DTZ regional research head Dr Lee Nai Jia.

“Another reason is the price gap between sellers and buyers. Sellers (of luxury homes) have better holding power compared with those of mass-market condominiums. At the same time, buyers have been looking for steep discounts.”

Nonetheless, DTZ noted that sales of landed homes in Districts 9 to 11 are holding up, with 30 homes worth a total of $266.3 million sold during the quarter to date. This is comparable to the 32 homes worth $274.9 million sold during the same period last year and 23 homes worth $244 million finding buyers in 2013.

Top-selling projects in the primary market this year include Leedon Residence, d’Leedon and Palms @ Sixth Avenue.

In the secondary sales market, the most popular developments include Goodwood Residence, St Regis Residences and Urban Resort Condominium.

Dr Lee added that while the number of foreign purchases of high-end apartments have generally declined, purchases by Malaysian and Indian buyers are the most resilient.

Acquisitions by Chinese buyers dropped 37 percent from two years ago to 34 units in Q2, while those by Malaysians dipped by 18 percent to 32 units.

 

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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