Two high-profile transactions at the luxury freehold development, Park Nova, have caught the attention of the market, with one unit transacting at an eye-watering $6,593 per square foot (psf). This marks the second-highest psf price ever recorded for a private residential property in Singapore. These deals come amid a challenging prime residential landscape, following the government’s stringent cooling measures that have kept many foreign buyers at bay.
Key Transactions in January 2025
According to the Urban Redevelopment Authority’s (URA) Realis database, the two transactions at Park Nova took place in January 2025 and involved buyers classified as a foreigner and a permanent resident (PR). Both were new sales directly from the developer, Hong Kong-based Shun Tak Holdings.
- A 20th-floor penthouse measuring 5,899 sq ft sold for $38.9 million, translating to $6,593 psf, a near-record price for Singapore’s private residential market.
- A 19th-floor unit, spanning 2,906 sq ft, changed hands for $16.6 million at $5,708 psf.
These transactions are well above the development’s initial median launch price of $4,979 psf in May 2021, demonstrating the enduring appeal of the ultra-luxury segment.
Historical Context and Market Comparisons
To put these transactions into perspective, only seven private residential sales have ever breached the $6,000 psf threshold based on URA’s Realis database, with the first transaction for this kind happened in 2007. The highest recorded psf price was $6,650 psf, achieved by a 20th-floor unit at The Marq on Paterson Hill in November 2011.
Additionally, the median price of transactions in the Orchard planning area, where Park Nova is located, was $2,906 psf over the past six months. The latest Park Nova deals significantly outperform both the historical and current market benchmarks, reinforcing its position as one of the most exclusive addresses in Singapore.
ABSD and the Impact on Foreign Demand
The high prices at Park Nova are particularly notable given the government’s cooling measures, which have significantly dampened foreign buying activity.
- Foreign buyers currently face a 60% Additional Buyer’s Stamp Duty (ABSD) on any residential property purchase, up from 30% prior to April 2023.
- PRs pay 5% ABSD on their first property, 30% on their second, and 35% on their third and subsequent purchases.
These policies have caused a sharp contraction in foreign demand, which historically played a key role in Singapore’s prime property sector. Many foreign professionals and expatriates who might have purchased homes in the past have shifted towards the leasing market instead, as rental rates, while stabilising, remain relatively attractive.
Market Trends: Prime Non-Landed Segment Remains Subdued
The broader prime non-landed residential market continues to face headwinds. A Knight Frank report indicates:
Despite these challenges, Park Nova’s record-setting sales suggest that select ultra-luxury projects with unique attributes—such as freehold status, prime location, and exclusive design—can still command a premium, even in a market constrained by regulatory measures.
Expert Take: Is This a Market Resurgence?
Experts remain cautious about reading too much into these sales.
The 60% ABSD rate for foreign buyers remains an excessive hurdle. Even if the government were to roll back ABSD to 30%, it is uncertain whether this would meaningfully revive demand from overseas investors. However, such a move would signal that authorities are receptive to market conditions and could offer a psychological boost to both buyers and developers.
Looking Ahead: Will Ultra-Luxury Continue to Defy Gravity?
While broader prime market sentiment remains tepid, the latest Park Nova transactions suggest that ultra-high-net-worth individuals are still willing to pay top dollar for ultra-prime assets in Singapore. The key takeaway is that scarcity and quality remain the defining factors in this niche segment.
However, in the absence of policy adjustments, the overall prime non-landed market is expected to remain soft throughout 2025, with Knight Frank forecasting a 1% decline to a 2% increase in prices—a modest outlook reflecting prevailing headwinds.
Park Nova’s record-breaking sales reinforce a critical point: while government measures have reshaped buyer demographics, the desire for top-tier properties remains steadfast among a select few who can navigate the heightened barriers to entry. Whether these transactions signal a broader trend or remain outliers in an otherwise subdued market remains to be seen.
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