Singapore’s home buyers and sellers are still feeling the effects a year since the city-state doubled the stamp duty for many foreign buyers last April, especially with real estate prices still elevated. But, as with any market in flux, the period of change has brought some buyers an opportunity.
“These policy changes have had a greater impact on luxury homes as most buyers in this category are investors and foreign buyers,” said Christine Sun, chief researcher and strategist, at Singapore-headquartered real estate company OrangeTee Group.
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In April 2023, stamp duties increased from 30% to 60% for foreign buyers in addition to a 3% to 5% raise for all purchasers of a secondary property. The Additional Buyer’s Stamp Duty, or ABSD, may lead foreign buyers and property investors to bide their time, particularly if they’re pursuing citizenship or permanent residency, which entitles them to a much lower 5% ABSD rate on the purchase of their first Singapore home.
Other buyers may have opted to delay purchases expecting prices to moderate as demand subsides. But prices are remaining firm despite cautious buying sentiment and fewer transactions. Within the Core Central Region, which includes the Central Business District, the Marina Bay, postal districts 9, 10, 11, as well as Sentosa Cove, apartment and condo prices increased 1.9% year on year in 2023, according to Singapore’s Urban Redevelopment Authority. In the first quarter of this year, early government estimates show a 3.1% quarter-over-quarter price increase.
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This misalignment in prices between buyers and sellers is deterring sales. For instance, the number of transactions for Good Class Bungalows deals—a local term for a type of luxury single-family house—fell to 23 deals, according to CBRE, the fewest since 1996 when the government first made data available. Luxury condos and apartment sales worth at least S$5 million (US$3.69 million) also declined from 458 units in 2022 to 383 in 2023.
Despite the slump, Chia Siew Chuin, head of residential research, research and consultancy at JLL Singapore said there’s still an appetite for attractive projects. Of note is Watten House, a freehold, low-rise condo project in Bukit Timah, which saw an increase in luxury sales in the last quarter of 2024.
Here are four areas where wealthy buyers can find potential luxury deals in Singapore.
Sentosa Cove and Postal District 4
This resort residential zone, about 20 minutes from the Central Business District by rail, is the jewel of Sentosa Island, located a mile off the coast of the main island.
A gated community, Sentosa Cove also offers 24-hour security and manicured gardens and walkways. “The sea view and tranquil environment are not replicated in any other parts of urban Singapore,” said Han Huan Mei, director of research for List Sotheby’s International Realty in Singapore.
There is one more appeal—foreign buyers can buy and own terrace houses and villas, which are restricted on the main island. “The villas are generally two stories high with a basement, comprising four or more en-suite bedrooms,” said Han. Most are 7,000 to 10,000 square feet with land area of around 8,000 square feet each. Recent transactions show villas selling between S$14 million and S$20 million. “On the main island, bungalows of similar sizes located in Good Class Bungalow Areas, which carry a freehold tenure, were transacted at above S$20 million,” Han said.
Apartments are often large and sell for less than those in prime districts on the main island. “The bigger living space of the apartments at Sentosa Cove are attractive to expatriates and families with young children,” said Han.
From Q1 2023 to Q1 2024, luxury condominiums within Sentosa Cove of about 2,500 square feet sold for between S$5.5 million to S$6.1 million, according to caveat records. Larger units, closer to 5,000 square feet, sold for about S$8 million to S$11 million during that period. Since 2023, bungalows have ranged from S$13.7 million up to S$36.5 million. This latter price bought a waterfront Coral lsland bungalow with 13,434 square feet of land.
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Meanwhile, Postal District 4, which besides Sentosa includes areas like Harbourfront and Telok Blangah, holds appeal for buyers, too. “While Sentosa is known for luxury properties, other parts of District 4 may offer quality waterfront or near-waterfront, non-landed homes/condominiums at more competitive prices,” Chia said.
Examples include Caribbean at Keppel Bay, Corals at Keppel Bay and Reflections at Keppel Bay. Units measuring about 2,500 square feet at developments like these sold for less in 2023 than other luxury neighborhoods—about S$4.5 million to S$4.9 million.
Core Central Region (CCR) and Central Business District (CBD)
Collectively, the Core Central Region incorporates Singapore’s most prestigious luxury addresses, including exclusive shopping in Orchard, Boat Quay nightlife and the city’s network of green spaces. About half of condominium and apartment transactions in 2023 in the Central Business District were between S$2 million but less than S$5 million.
“Potential bargains are usually project-specific rather than located in certain neighborhoods,” said Sun. Some projects are approaching their ABSD remission deadlines—developers can get a 35% remission if they sell all developed units within five years of purchasing the land. This is leading to special discounts. Deputy Prime Minister Lawrence Wong announced earlier this month that 44 developments were given such extensions.
One such project is Cuscaden Reserve, where attractive pricing has spurred sales.
Following the March 16 relaunch, Cuscaden Reserve, in the heart of Orchard in District 9 sold 80 of 180 remaining units “slightly above S$3,000 per square foot,” the Straits Times reported this month. The Business Times reported discount offers started from S$2,900 per square foot, about 20% below the average price of the 12 previously sold Cuscaden Reserve units.
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“Buyers may be able to find attractive deals in the secondary market within the CCR, as resale homes are generally less expensive than new projects,” said Chia. Between Q1 2019 to Q1 2014, transaction records show median resale prices of CCR condominium and apartments often around 30% to 35% lower than new units in the primary sales market.
The Central Business District, one of the world’s great corporate and financial hubs encompassing postal districts 1, 2 and 7, is increasingly becoming a district known for luxury living. “It offers a distinct experience compared to the traditional, more established and highly coveted residential districts of 9, 10, and 11,” Chia said. Projects are often larger-scale, mixed-use developments which integrate luxury residences with hotels, offices and retail. Caveat records suggest that some units in the 1,800 square foot range sold in the first quarter of 2024 for a nearly 50% discount over comparably sized units in 2023.
Though CBD prices are “lofty,” according to Chia, there may be opportunities at individual properties. “In light of the current subdued buying sentiment, some developers may be open to negotiation on pricing and terms.”