In terms of landed luxury properties, transactions surged by 30 per cent from 40 units sold in H2 2022 to 52 units sold in H1 2023, with detached houses accounting for the largest number of sales in the first half of the year. In terms of price, sales of landed luxury properties priced at at least S$50 million accounted for 12 per cent of total sales in the first half of the year, more than double the share (5 per cent) in the second half of last year.

In its luxury property report, DYX Industrial Consulting is optimistic about the landed luxury property market, as supply of luxury properties in Singapore is tight and demand remains buoyant.

However, DYIC also said that the April cooling measures, which require Singapore citizens to pay an additional 3-5 per cent SSD on the purchase of a second or more properties, are expected to have some impact on the market (knee-jerk reaction).

As for non-landed luxury properties, transaction volume fell 23.8 per cent, slipping from 42 units sold in H2 2022 to 32 units in H1 2023, and because of this, sales in H1 2023 also fell 16.5 per cent to S$540 million.

Nonetheless, non-landed luxury properties priced at S$15 million and above doubled from 19 per cent of total sales in H2 2022 to 38 per cent of total sales in H1 2023 due to continued strong demand from high net worth individuals.

Sales of larger non-landed luxury homes continued to increase in the first half of 2023, with non-landed luxury homes of 3,000 square feet and above increasing their share of total sales to 75 per cent sequentially, up from 60 per cent in the second half of 2022 and 52 per cent in the first half of 2022.

Dai & Yusheng Industrial Consulting expects demand for non-landed luxury homes to remain strong as the number of high net worth individuals (HNWIs) in Singapore continues to grow, as Singapore is seen by these HNWIs as an economically stable country and a safe haven for investment.

There is widespread concern about the performance of foreign buyers in the market. It is worth noting that in the first half of 2023, the largest number of expatriates purchasing non-landed luxury homes were mainland Chinese buyers, who for the second year in a row were the largest number of expatriate private home buyers. Meanwhile, mainland Chinese buyers remain an important source of demand in the luxury property market, topping the list for the second consecutive time.

The introduction of cooling measures in April did have an impact on the market, with Dai Yuk Cheung Industrial Consulting noting in its report that only four non-landed luxury units were sold in June-July 2023, and that the purchasers had all become Singapore permanent residents.

DYXI expects foreign buyers' share of purchases in the non-landed luxury market to decline in the second half of 2023, hit by the increase in the Additional Buyer's Stamp Duty (ABSD), which doubles the amount of ABSD that foreign buyers are required to pay to 60 per cent.