Singapore’s luxury real estate market reported fewer sales throughout 2022 compared to 2021, however, home prices have increased year over year according to a recent report from List Sotheby’s International Realty, Singapore.
According to the report, all three luxury segments of Singapore’s luxury homes market have been affected(Good Class bungalows (GCBs), bungalows at Sentosa Cove, and luxury apartments in the Core Central Region (CCR)) have been affected by factors like inflation, interest rate hikes, recession risks, and investors’ confidence geopolitical uncertainties.
To note, from Sotheby’s International Realty report, “In 2022H1, there were 28 bungalow deals in the GCB areas, down from 35 deals in 2021H2 and 55 deals in 2021H1. Over at Sentosa Cove, 8 bungalows were sold in 2022H1, compared with 15 and 11 bungalows sold in 2021H2 and 2021H1 respectively”.
Foreign investment is still prominent with large companies attracted to the ease of business, family friendliness, tax incentives, and open borders according to the report.
“These factors will continue to support the sale and rental of luxury homes, in addition to the growing pool of wealthy locals. Nevertheless, we do expect a slowdown in sales volume in 2022H2 due to rising inflation and interest rates as well as repercussions from the war in Ukraine.” Says, the Sotheby’s report.