Light at the end of the tunnel for prime homes
With lower prices and unsold inventory of luxury homes slowly shrinking, the search for value in this asset class is set to gather pace.
IT has been almost two years of being in the doldrums for Singapore's private residential market, in particular for the luxury homes segment since 2012 - a contrasting picture from the two initial buoyant years of 2009-2011 when record-low interest rates and increased foreign investment propelled luxury property demand.
Sales performance of high-end private homes in the Core Central Region (CCR) has been much battered by the slew of property cooling measures, in particular the 15 per cent Additional Buyer's Stamp Duty (on top of the 3 per cent stamp duty) imposed on foreign home buyers who made up around 30 per cent of buyers in the luxury home market before the imposition of the ABSD.
This led the transaction volume in the CCR to fall by almost half from 3,702 units in 2013 to 1,955 units in 2014, and affected prices.
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