Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest luxury condominium handle 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The freehold project on Gilstead Street by Kheng Leong Co likewise saw the second and third-largest deals throughout the quarter. The units sold are both 4,209 sq ft apartments that fetched $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
This brings the number of GCB offers to 25 for the first 9 months of the year, going beyond the 20 that were approximated to have negotiated for the whole of 2023. The overall value of GCBs sold to day this year clocks in at $958.7 million.
In the GCB rental market, the leading service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly lease of $120,000.
Yip marks that there were eight luxury non-landed homes transacted at $10 million and above in 3Q2024, that is 2 less than the 10 deals visited the previous quarter. “However, there were some non-caveated arrangements like a five-bedroom unit in Hills (a real estate luxury condominium on Cairnhill Circle) that was claimed to be cost around $13 million,” he continues.
Looking forward, Yip believes sale and rental deals for the high-end apartment market could be greater in 4Q2024, generated by demand from ultra-wealthy foreign individuals in the UK seeking to move ahead of proposed tax change, including the abolishment of a tax program that provides concessions for people with offshore capital.
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In the leasing market, the general ordinary regular monthly rental fee of upscale non-landed homes increased 2.7% q-o-q to $14,932. The record includes that there was even more attention in four-bedroom high-end apartment units, with the typical rent for this group expanding at a quicker pace of 3.6% to hit $18,389 each month during the quarter.
“Because of the possible modification to the tax status of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy international residents may emigrate to protect their assets. The countries present involve Dubai, Italy, Singapore and Switzerland,” Yip explains.
Yip observes that queries in the deluxe apartment market have actually raised, with numerous coming from newly-minted Permanent Homeowners (PRs) and citizens that had gotten their PR or citizenship in 2023 following the increase in ABSD. “Much of them purchased a high end non-landed home upon approval of their PR or nationality,” he states.
The Good Class Bungalow (GCB) market additionally observed a pick-up in activity in 3Q2024. An estimated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The bungalows marketed in 3Q2024 brought a total amount of $541.2 million, 80.9% greater q-o-q.
The luxury condo industry saw a decline in sales in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the premium residential market, the consultancy claims a calculated 55 high-end non-landed homes– which it specifies as condo units found in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and over– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% decline in transactions quantity and a 15.5% decrease in sales worth compared to the 57 deluxe condominium units cost $482.5 million in 2Q2024.
On a y-o-y basis, deluxe condominium sales quantity is up 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
The most significant GCB deal in 3Q2024 was a property in Tanglin Hill that was apparently cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Nevertheless, the numbers show a significant improvement contrasted to the 37 high-class apartment units sold for $295.8 million that Huttons disclosed in 3Q2023. At the time, the market was staggering from the April 2023 roll-out of cooling down procedures, including an increase in additional buyer’s stamp duty (ABSD) for immigrants to 60%, together with an anti-money laundering suppression in August 2023.
