In the Core Central Region (CCR), there were only 64 residential property purchases made by foreigners (non-permanent residents) in the first half of 2024. In the first quarter of 2024, there were a total of 21 foreign purchases of both new and resale non-landed homes. The number increased to 43 in the second quarter of 2024, resulting in a total of 64 for the first half of 2024. PropNex Research reported that a significant portion of these transactions, specifically 56% or 36 caveats, were made by US buyers.
By analysing data from different countries and years, focusing on the top 5 entries in the first half of 2024, we can gain valuable insights. The information used for this analysis comes from trusted sources such as PropNex Research and URA Realis, covering the period from 1H 2024 until 24 June.
Since 2019, there has been a noticeable increase in transactions by US buyers in the CCR. In 2022, the US buyers outpaced Chinese buyers by purchasing 130 transactions, compared to the 114 units bought by the latter during the same period.
Ismail Gafoor, CEO of PropNex, explains that the increase in home purchases by US citizens can be attributed to the favourable stamp duty treatment they receive, thanks to the free trade agreement (FTA) between the US and Singapore. In addition, individuals who are nationals or permanent residents of Iceland, Liechtenstein, Norway, and Switzerland receive comparable stamp duty treatment through their respective Free Trade Agreements with Singapore, according to the source.
Despite a generally subdued market outlook for the remainder of the year, it is worth noting that the transacted prices on average of non-landed private homes in the Core Central Region (CCR) have remained stable, even following the increase in additional buyer’s stamp duty (ABSD) in April 2023.
According to the caveats lodged, the average price psf of a new condo of non-landed homes in the CCR was $3,273 per square foot in the second quarter of 2024. This price is higher than the average before the ABSD hike in April 2023, as shown in Table 3 “Average transacted unit prices”. Meanwhile, the average resale price of non-landed private homes in the CCR was $2,133 psf in 2Q2024, which showed a slight decrease compared to the $2,172 psf in 2Q2023.
On the other hand, Gafoor from PropNex points out that there has been a significant decrease in the sales of non-landed homes in the CCR. This can be attributed to the reduced number of property launches in this segment, which is a result of the property cooling measures.
PropNex has identified several potential upcoming launches in the CCR for the second half of 2024. These include Marina View Residences with 683 units, Aurea with 186 units at the former Golden Mile Complex, and The Collective at One Sophia with 367 units. Additionally, Gafoor mentions that there are upcoming developments in the Rest of Central Region, including the Union Square Residences, which is expected to be available in the second half of 2024.
