Chart of the Day: Singapore’s luxury property sector to continue downtrend in 2015

Amid challenging market and punitive ABSD.

A bleak 2015 hovers above Singapore’s property market, especially in the high-end pie.

According to a report by RHB Group, the sluggish luxury segment is not recovering any time soon. The high-end segment with units fetching more than SGD2,000 psf (median price) moved only 25 units (Mar: 16 units) or 2.1% (Mar: 2.3%) of total Apr sales.

Analysts believe that given the challenging property market, coupled with the punitive 15% ABSD for foreigners (typical buyers for high-end properties), the high-end segment is likely to continue its downtrend into 2015.

Next month’s new home sales figure are expected dip as there are not any new prominent project launches in the month of May. Pollen & Bleu by Singland Holdings is most likely to launch this month, however the project should not move sales significantly as it is a small project with a total of 106 units.