Prime condo prices fall in H2 2023 after higher stamp duty
Knight Frank reports that only 64 prime non-landed residential properties were bought in the last six months of 2023, with an average price of S$2,302 per square feet. PHOTO: YEN MENG JIIN, BT
The prices of prime condominiums in Singapore declined by 1.1 per cent in the second half of 2023, following the increase in the additional buyer's stamp duty (ABSD) for foreigners and entities in July 2023. This was the first drop in prime condo prices since the first half of 2021, according to a report by Knight Frank.
The report defines new condos as those in the Core Central Region (CCR), which comprises districts 9, 10 and 11, as well as the Downtown Core and Sentosa. The CCR saw a 23.2 percent decrease in sales volume of non-landed homes in the second half of 2023, compared to the first half. The report attributed this to the higher ABSD rates, which rose from 15 per cent to 20 per cent for foreigners and from 25 per cent to 30 per cent for entities.
The report also noted that the luxury segment, which comprises condos with prices above S$10 million, was more resilient than the mass market segment, which comprises condos with prices below S$1.5 million. The luxury segment saw a 42.9 per cent increase in sales volume in the second half of 2023, compared to the first half, while the mass market segment saw a 36.3 percent decrease.
The report projected that the prime condo market will remain subdued in the first half of 2024, as buyers and sellers adjust to the new ABSD rates and the uncertain economic outlook. However, it also expected that the demand for prime condos will be supported by the limited supply of new launches and the strong interest from high-net-worth individuals.
Adapt from The Business Times
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