Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the rentals market, the total typical monthly rent of expensive non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was more interest in four-bedroom luxury apartment units, with the ordinary rental fee for this group expanding at a quicker speed of 3.6% to hit $18,389 each month throughout the quarter.
The biggest GCB deal in 3Q2024 was a property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
In the GCB leasing market, the top service deal in 3Q2024 was for a GCB in Chatsworth Park that brought a monthly rent of $120,000.
This brings the number of GCB offers 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 total value of GCBs marketed to day this year appear at $958.7 million.
The luxury apartment market saw a decrease in profits in 3Q2024, according to data gathered by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy claims a projected 55 luxury non-landed homes– which it defines as condo units found in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and over– were offered in 3Q2024 for $407.7 million. This represents a 3.5% decrease in transactions quantity and a 15.5% decrease in sales value compared to the 57 high-end condo units cost $482.5 million in 2Q2024.
Yip notes that there were 8 deluxe non-landed homes settled at $10 million and above in 3Q2024, that is two less than the 10 offers logged in the last quarter. “Nonetheless, there were some non-caveated arrangements like a five-bedroom unit in Hilltops (a property luxurious condominium on Cairnhill Circle) that was said to be cost around $13 million,” he proceeds.
On a y-o-y basis, luxury condo sales number is raise 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling measures days,” states Mark Yip, CEO of Huttons Asia.
Nevertheless, the figures show a considerable improvement compared to the 37 high-class apartment units cost $295.8 million that Huttons reported in 3Q2023. During the time, the market was staggering from the April 2023 roll-out of cooling down actions, including an increase 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 likewise observed a pick-up in activity in 3Q2024. An estimated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows sold in 3Q2024 fetched an overall of $541.2 million, 80.9% higher q-o-q.
Looking ahead of time, Yip thinks sale and rental deals for the luxury apartment market could be higher in 4Q2024, driven by demand from ultra-wealthy foreign people in the UK seeking to move ahead of proposed tax change, featuring the abolishment of a tax obligation regime that gives concessions for residents with offshore wealth.
The largest high-end condo sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The property project on Gilstead Road by Kheng Leong Corporation likewise saw the second and third-largest deals throughout the quarter. The units sold are both 4,209 sq ft apartments that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
Yip sees that enquiries in the high-end condo market have actually increased, with many coming from newly-minted Long-term Homeowners (PRs) and people that had gotten their PR or citizenship last year following the increase in ABSD. “A number of them acquired a high end non-landed home upon approval of their PR or citizenship,” he claims.
“Because of the potential adjustment to the tax obligation standing of some 74,000 non-domiciled dwellers in the UK, some of these ultra-wealthy international people might emigrate to secure their assets. The states under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
