Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The largest deluxe condo deal in 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The property development on Gilstead Street by Kheng Leong Co also saw the 2nd and third-largest deals during 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.
In the GCB leasing market, the leading service deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly lease of $120,000.
In the rentals market, the total typical monthly rent of luxury non-landed homes increased 2.7% q-o-q to $14,932. The report adds that there was even more interest in four-bedroom luxury apartment units, with the ordinary lease for this group expanding at a quicker rate of 3.6% to hit $18,389 each month during the quarter.
Looking ahead of time, Yip believes sale and rental transactions for the luxury apartment market could be greater in 4Q2024, generated by demand from ultra-wealthy foreign residents in the UK finding to relocate ahead of suggested tax change, including the abolishment of a tax obligation program that provides concessions for residents with offshore capital.
The luxury condo market saw a downturn in sales in 3Q2024, according to information compiled by Huttons Asia. In its most recent Prestige Report that monitors the premium residential market, the consultancy states a projected 55 high-end non-landed homes– which it defines as condominium units located in the Core Central Region that are sized from 2,000 sq ft and valued at $5 million and above– were sold in 3Q2024 for $407.7 million. This represents a 3.5% decrease in transactions quantity and a 15.5% decline in sales value matched up to the 57 high-end apartment units cost $482.5 million in 2Q2024.
On a y-o-y basis, deluxe condominium sales quantity is raise 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling steps days,” claims Mark Yip, Chief Executive Officer of Huttons Asia.
Nevertheless, the figures reveal a substantial development compared to the 37 luxury condominium units cost $295.8 million that Huttons disclosed in 3Q2023. At the time, the market was staggering from the April 2023 roll-out of cooling actions, including a hike in additional buyer’s stamp duty (ABSD) for immigrants to 60%, along with an anti-money laundering crackdown in August 2023.
The Good Class Bungalow (GCB) market additionally viewed a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The cottages marketed in 3Q2024 brought a total amount of $541.2 million, 80.9% higher q-o-q.
Yip sees that queries in the luxury apartment market have actually enhanced, with many coming from newly-minted Long-term Locals (PRs) and citizens that had actually made an application for their PR or citizenship in 2023 following the hike in ABSD. “Many of them purchased a luxurious non-landed home upon approved of their PR or citizenship,” he states.
Yip indicates that there were 8 luxury non-landed homes settled at $10 million and above in 3Q2024, that is two less than the 10 offers logged in the recent quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hills (a property high-class condo unit on Cairnhill Circle) which was said to be sold at around $13 million,” he proceeds.
“As a result of the potential adjustment to the tax standing of some 74,000 non-domiciled tenants in the UK, some of these ultra-wealthy foreign people might move abroad to secure their properties. The states under consideration include Dubai, Italy, Singapore and Switzerland,” Yip discusses.
The most significant GCB sell 3Q2024 was a real property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
This brings the number of GCB transactions to 25 for the very first nine months of the year, surpassing the 20 that were approximated to have actually negotiated for the whole of 2023. The overall value of GCBs offered to day this year clocks in at $958.7 million.
