During this quarter, the sales volume of luxury residences experienced a sharp decline, mainly due to an ongoing investigation into Singapore's largest money laundering case, further dampening market sentiment.

The transaction volume dropped by 41.3% on a quarter-to-quarter basis, with the total transaction value plummeting by half, indicating a significant reduction in demand for purchasing luxury residences.

Furthermore, the increase in ABSD tax rates had an adverse impact on the market, especially with the tax rate for foreigners doubling to 60%, significantly increasing the cost of purchasing luxury residences. These factors collectively resulted in dual pressures on the overall transaction volume and prices in the market, posing severe challenges to the luxury residential market.

Meanwhile, there seems to be an increase in demand in the rental market, especially given the higher ABSD rates, prompting more foreigners to opt for renting to circumvent purchasing restrictions. Rents for luxury apartments and high-quality landed properties are on the rise, indicating a gradual growth in rental market demand.

However, it is anticipated that the rental market may face greater challenges in the coming months, particularly after the arrest of suspects involved in money laundering. Owners may become more cautious about renting luxury residences to foreigners, potentially further impacting the overall market and leading to additional fluctuations and adjustments in the future.