Technopreneurs Lead Singapore’s Buoyant Luxury Property Market in 1st Half of 2021

Singapore’s tech entrepreneurs led a flurry of transactions in the luxury property market in the first half of 2021, with demand for upscale houses likely to continue on the back of low interest rates, according to a report by real estate and investment firm CBRE.

Notable transactions from the good class bungalows (GCB) segment include the purchase of a penthouse at 27 Olive Road by gaming chair Secretlab CEO and co-founder Ian Ang for S$36 million; a property at 55 Bin Tong Park by the wife of Grab’s founder for S$40 million; and another upscale property along Nassim Road by the wife of the founder of Nanofilm Technologies for S$128.8 million. A technopreneur also bought a bungalow under construction in Cluny Hill for S$63.70 million or (S$4,261 per square foot), CBRE said.

GCB belongs to the most expensive real estate markets in Singapore and is often seen as a status symbol among the city-state’s wealthy elites. A property must span at least 1,400 square metres and be located in Singapore’s prime residential districts to qualify as a GCB. These properties are only sold to Singaporean residents, unless you are ultra-rich and have made a significant investment in the city-state.

CBRE said nine GCB transactions surpassed the S$2,000 psf threshold between January and June 2021, pushing the average GCB prices up nearly 22% year over year to S$1,728 psf.

“The property market has picked up pace as Singapore transitions towards endemic living," CBRE said.

“Demand for GCBs should remain buoyant, coming from both the old and new rich in Singapore, as well as newly minted Singaporeans.”

Meanwhile, 13 Sentosa Cove bungalows changed hands in the first half, with the total value of all transactions at S$219.07 million.

Luxury apartments also saw a buoyant performance, with notable transactions involving properties from Eden at Draycott Park, Park Nova, and Les Maissons Nassim. As a result, the average price of luxury apartments reached a new high of S$3,824 psf.

CBRE expects the luxury residential market to continue to benefit from low interest rates and ample liquidity, as well as the reopening of borders, which could renew foreign demand.