Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The Good Class Bungalow (GCB) market also saw a pick-up in activity in 3Q2024. An approximated 12 GCBs were sold last quarter, up from 8 GCBs in 2024. The bungalows sold in 3Q2024 fetched a total amount of $541.2 million, 80.9% greater q-o-q.
Looking forward, Yip thinks sale and rental deals for the luxury apartment market could be greater in 4Q2024, steered by demand from ultra-wealthy international people in the UK seeking to transfer ahead of recommended tax reforms, featuring the abolishment of a tax obligation regime that gives concessions for people with offshore capital.
“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 residents might move abroad to protect their assets. The states present include Dubai, Italy, Singapore and Switzerland,” Yip reveals.
This brings the number of GCB arrangements to 25 for the initial 9 months of the year, going beyond the 20 that were estimated to have actually worked out for the entire of 2023. The total value of GCBs offered to date this year appear at $958.7 million.
In the GCB leasing market, the top leasing offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly rental fee of $120,000.
Nevertheless, the numbers present a significant enhancement compared to the 37 high-class condominium units cost $295.8 million that Huttons reported in 3Q2023. At the time, the marketplace was reeling from the April 2023 roll-out of cooling down actions, including a hike in additional buyer’s stamp duty (ABSD) for immigrants to 60%, along with an anti-money laundering suppression in August 2023.
Yip notices that queries in the high-end apartment market have raised, with numerous originating from newly-minted Long-term Citizens (PRs) and citizens that had actually applied for their PR or citizenship last year following the increase in ABSD. “Much of them got a luxury non-landed home upon approval of their PR or nationality,” he claims.
In the leasing market, the general typical monthly lease of upscale non-landed homes increased 2.7% q-o-q to $14,932. The record adds that there was more interest in four-bedroom high-end condo units, with the ordinary rent for this group growing at a quicker rate of 3.6% to hit $18,389 each month during the quarter.
The biggest deluxe apartment sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The freehold development on Gilstead Road by Kheng Leong Corporation also saw the second and third-largest deals during the quarter. The units sold are both 4,209 sq ft houses that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) respectively in September.
On a y-o-y basis, luxury condo sales volume is up 48.6% in 3Q2024, while sales market value is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling steps days,” states Mark Yip, CEO of Huttons Asia.
The greatest GCB handle 3Q2024 was a real property in Tanglin Hill that was reportedly cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
The high-end condo market saw a decrease in revenues in 3Q2024, according to data compiled by Huttons Asia. In its newest Prestige Report that monitors the premium residential market, the consultancy claims a projected 55 high-end non-landed homes– which it specifies as apartment units found in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and over– were sold in 3Q2024 for $407.7 million. This represents a 3.5% decrease in transactions volume and a 15.5% decline in sales value compared to the 57 luxury condo units cost $482.5 million in 2Q2024.
Yip notes that there were 8 deluxe non-landed homes transacted at $10 million and over in 3Q2024, that is two less than the 10 deals logged in the recent quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hilltops (a property high-class condo on Cairnhill Circle) that was stated to be sold at around $13 million,” he continues.
