Houses in the Cluny Hill area, near the Botanic Gardens in Singapore. Photographer: Bryan van der Beek/BloombergThree of the city-state's most prestigious homes, known as good class bungalows, are on sale in a quiet central neighborhood where only five such mansions have changed hands over the past five years. The coveted residences are expected to fetch a record price of almost S$240 million combined after prospective buyers submit bids by Nov. 3.
It’s the most extreme example of how Singapore’s red-hot real estate market is bucking a global downturn spurred by higher interest rates as central banks seek to tame inflation. The super-rich are increasingly drawn to global financial hubs seen as winners in the pandemic, and money isn’t a factor when buying trophy homes.
The properties are seen as the ultimate luxury in a country where 80% of the population lives in public housing flats. The Nassim Road homes are considered the ultra-prime tier. “Anything that comes to the market in Nassim is extremely rare,” said Nicholas Keong, head of private office at brokerage Knight Frank Singapore, adding that asking prices reflect this. “Buying a good class bungalow in Nassim is like buying a piece of fine art.”
The most common route, though, is to become a citizen or purchase through a Singaporean spouse. Indonesian and Chinese tycoons who acquired Singapore citizenship are among those keen on the Nassim homes for sale, Realstar Premier’s Wong said. While home prices in many global markets are falling, Singapore’s private property values continue to rise. In the third quarter, they surged 13% from 2021, and Moody’s Investors Service forecast that housing affordability in the city-state will deteriorate.
This is a really toxic way of thinking. It automatically excludes almost everyone else. I think everybody is somebody not just the financially rich.