Overbuilding in Singapore's luxury homes sector spurred a flurry of doomsday scenarios, but prices may have already hit bottom, with buyers beginning to nibble.
"We are seeing a number of our clients coming back very seriously this time around," said Chandran V R, managing director at property agent CRE. "We are currently serving buyers in the market for luxury apartments. A lot of them are very ready to make a move because they feel buying has corrected and if they wait too long, the market can take off."
He noted that over the past couple months, there have been several big property deals, including the 51 million Singapore dollars ($37.9 million) paid for the penthouse at the Le Nouvel Ardmore development, a potential record for a penthouse in the city-state.
The interest is primarily among ultra-high net worth clients for apartments over 3,000 square feet, penthouses and good quality bungalows, Chandran said.
Analysts believe luxury home prices are at their nadir, although the same might not be true of mass-market properties.
"We have turned more positive on the high-end residential market as prices in this segment have fallen by 24 percent from their peak vs. a 6 percent decline for the overall market," Tricia Song, Asia ex-Japan real estate analyst at Barclays, said in a note Monday. "Price corrections have attracted buyers back to this segment."