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As geopolitical tensions escalate, an increasing number of ultra-high net worth individuals are viewing Singapore as a safe haven for their assets. This trend has driven activity in Singapore's non-landed luxury property market, with resale transaction volumes increasing by 17.6% in the first quarter, reaching 40 units.

A report released by real estate brokerage firm Huttons on May 2nd revealed that the resale transaction value of non-landed luxury properties in Singapore reached SGD 282.9 million in the first quarter, representing a 4.2% increase quarter-on-quarter. Desmond Sim, CEO of Huttons Group, noted that geopolitical tensions are the primary reason prompting ultra-high net worth individuals to consider Singapore as a safe haven for their assets, thus driving demand in the luxury property market.

Despite the rise in resale transaction volumes, when considering new luxury home sales and subsale transactions, the total volume of luxury property sales actually decreased by 34.3% in the first quarter. Only six new luxury homes were sold, significantly lower than the 34 units sold in the previous quarter. The surge in new luxury home sales in the fourth quarter of last year was mainly attributed to the strong performance of Watten House.

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The report also highlighted the three luxury property projects with the highest resale prices in the first quarter: Ritz Carlton Residences, Hilltops, and Ardmore Park. Among them, two units at Ritz Carlton Residences fetched the highest prices, with each unit selling for SGD 16.5 million, equivalent to SGD 5,397 per square foot. Reportedly, the buyers of these two units are Yuan Yonggang, Chairman of Suzhou Dongshan Precision Manufacturing Co., Ltd., and his wife Wang Wenjuan.

In terms of luxury property rentals, according to Huttons Group's statistics, the number of rental units in the first quarter was 569, representing a 3.6% increase quarter-on-quarter but a 2.6% decrease year-on-year. It is noteworthy that there was a significant increase of 36.5% quarter-on-quarter and 19.3% year-on-year in demand for four-bedroom luxury homes. This surge in demand drove a 6.5% increase in rental prices for four-bedroom luxury homes in the first quarter. This is also a clear indication of ultra-high net worth individuals relocating to Singapore with their families to avoid tense geopolitical situations.

Desmond Sim stated that with more ultra-high net worth individuals moving to Singapore, and some considering applying for permanent residency, the volume of luxury property transactions is expected to continue increasing. Regarding new luxury homes, he mentioned that four units at the luxury project 32 Gilstead on Gilstead Road were sold in April. Additionally, two large-scale luxury projects, Newport Residences and Skywaters Residences, will be launched in the coming months.