Market Size of Singapore Luxury Residential Real Estate Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Singapore Luxury Residential Real Estate Market Analysis
The Singapore Luxury Residential Real Estate Market is expected to register a CAGR of approximately 3% during the forecast period.
The luxury home sales in Singapore have risen to a new high in more than 10 years. The private home sales in the Core Central Region jumped by almost 25% quarter on quarter in the second quarter of 2021. They climbed by more than 4.5 times year on year. The landed housing segment saw an almost triple rise in the number of properties transaction in the first seven months of 2021. 272 luxury condominium units were sold, costing more than USD 5 million in the first half of 2021. Of these condominium units, 70 were super luxury homes USD 10 million.
More billionaires and international celebrities are interested in buying luxury homes in Singapore. The market has benefited against the backdrop of wealth creation and a surge in Asian wealth. There are many new entrants in the luxury homes market, including budding entrepreneurs and individuals working in emerging industries. The market share of domestic buyers is growing faster than the foreigners'. 75.7% of luxury condominium units in the first half of 2021 were bought by Singaporeans. The foreign buyers are gradually streaming back into the market.
The focus on capital preservation through the pandemic has driven many investors to invest in real estate properties in Singapore. The ultra-high-net-worth individuals are interested in buying luxury homes in Singapore as its wealth, income, and estate taxes are considered low by international standards. Despite the property curbs and economic headwinds, a confluence of factors like low crime rates, political stability, business friendliness, and legal transparency has cushioned the downside risks in the market. The intrinsic value of the properties is high, and they enjoy an attractive capital appreciation in the long run.
The market will continue to benefit from the increasing number of super-rich in Asia. The Government's moderate pace of land release and tight supply from collective sales will keep luxury homes in prime locations attractive. With the country's economy rebounding strongly and increasing consumer confidence, luxury home sales will pick up further during the forecast period.
