The average transaction price of a non-landed high-end private home in the first half of this year was $16.9 million, according to a new research report by Edmund Tie Industries (Edmund Tie). The total transaction value dropped 16.5 per cent to $540 million from a year earlier.

The average price of a landed private home, on the other hand, fell 4.6 per cent year-on-year to $20.5 million, in contrast to the 10.9 per cent growth in the second half of last year. Total transaction value increased by 24 per cent to $1.06 billion.

In terms of transaction volume, 32 non-landed high-end private residential units were sold in the first half of this year, down 23.8 per cent from a year earlier.

The report noted that market demand continued to shift towards larger units, particularly those measuring 3,000 square feet or more, which accounted for 75 per cent of total transactions, up from 52 per cent in the same period last year and 60 per cent in the second half of last year.

The super-luxury Les Maisons Nassim on Nassim Road was highly favoured by buyers, with four of the five highest-priced units transacted being from Les Maisons Nassim, priced between $30 million and $45 million, with a footage equivalent of $5,050 to $5,727.

Despite the drop in prices of landed private homes, the number of transactions increased by 30 per cent year-on-year to 52 units, with detached houses being the most popular, accounting for 81 per cent of the total number of transactions.

Some buyers were relentless in purchasing townhouses. Led by pent-up demand, houses priced at $50 million or above accounted for 12 per cent of total transactions, seven percentage points more than in the second half of last year.

The three highest-priced landed private home transactions included three prime townhouses on Nassim Road for a total of $206.7 million, or $4,500 per square foot. The buyer was an Indonesian family.

Premium townhouses, considered the best housing investment in Singapore, have seen a steady decline in transactions over the past year.

Eleven units changed hands in the first half of the year, 18 fewer year-on-year and three fewer year-on-year. Six of the prime flats resold in the first half of the year were in District 10, while the rest were in Districts 11, 21 and 23.

The report said, "Looking ahead, the growing number of high net worth individuals in Singapore will sustain the demand for non-landed premium private homes, as they are attracted by the country's stable economy and the fact that it is a safe haven where they can put their investment assets."

As for landed private homes, the research team at Dai Yoke Siang Industries believes that demand for such luxury properties may be affected by the property cooling measures in April this year, as local buyers purchasing a second or more home will have to pay a higher Special Buyer's Stamp Duty (SBD).

The effect of the SSD will be more pronounced in the next six months.

It is worth noting that Chinese buyers were the largest buyers of non-landed high-end private homes in both the second half of last year and the first half of this year. In terms of overall non-landed private properties, Chinese buyers have also been the largest source of demand over the past year.

The tightening of the Special Stamp Duty (SSD) for foreigners does not seem to have dampened the interest of wealthy foreigners in investing in non-landed luxury properties in Singapore. The proportion of homes bought by foreign buyers in the first half of the year was 38 per cent, as it was in the second half of last year.

However, when the sales of all other categories of non-landed private homes are taken together, the number of homes bought by foreigners fell to 5.3 per cent, slightly lower than the 5.6 per cent in the second half of last year.

In June and July this year, four luxury flats were purchased by permanent residents. In the next six months, the effect of the additional buyer's stamp duty will be more pronounced and the number of flats bought by foreign buyers is expected to fall .