_Prime Non-Landed and Landed Residential Market Update

Key Highlights

• In H1 2021 alone, the prime non-landed residential segment recorded deals amounting to S$2.0 billion, the highest since H2 2010 where sales within the luxury market segment totalled some S$2.4 billion.
• Rebounding from the pandemic-led recession last year, sales activity in H1 2021 was double the amount of S$1.0 billion registered in the later half of 2020, and surpassed the S$1.7 billion transacted in the whole year 2020.
• The pandemic changed the priorities and preferences of home purchasers, with many leaning towards larger floorplates to accommodate for both living and working in the comfort of their homes, thereby increasing demand for larger non-landed homes in the prime districts.
• The Property Price Index of private landed residential homes decreased slightly by 0.3% quarter-on-quarter to 184.8 in Q2 2021, but grew by 8.5% year-on-year.
• The increasing disposable income and earning power over the past decade has provided a fundamental economic base where more households are able to transit to landed houses.
• Following the uptick in sales in the later half of 2020, a total of 403 units above S$5 million was sold in H1 2021, translating into some S$4.3 billion.
• In the Good Class Bungalow market segment, 37 transactions in H1 2021 amounted to S$1.2 billion. This was higher than the previous peak of about S$1.1 billion in H1 2010.
• The landed market segment is envisaged to see continued interest and activity in the rest of the year, with prices moving upwards led by GCB sales.

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