Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the GCB leasing market, the leading service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly rental fee of $120,000.
The biggest deluxe condominium 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 freehold project on Gilstead Road by Kheng Leong Co additionally saw the 2nd and third-largest deals throughout the quarter. The units marketed 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 observes that enquiries in the high-end condominium market have actually increased, with numerous originating from newly-minted Permanent Locals (PRs) and citizens who had actually applied for their PR or citizenship in 2023 following the increase in ABSD. “A lot of them got a luxurious non-landed home upon confirmation of their PR or citizenship,” he states.
Nonetheless, the figures show a substantial enhancement compared to the 37 high-end apartment units cost $295.8 million that Huttons disclosed in 3Q2023. At the time, the market was reeling from the April 2023 roll-out of cooling procedures, 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 greatest GCB sell 3Q2024 was a real property in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
The Good Class Bungalow (GCB) market also saw a pick-up in action in 3Q2024. An estimated 12 GCBs were sold last quarter, up from 8 GCBs in 2024. The bungalows offered in 3Q2024 fetched a total amount of $541.2 million, 80.9% higher q-o-q.
Yip marks that there were 8 high-end non-landed homes negotiated at $10 million and above in 3Q2024, that is 2 less than the 10 offers visited the last quarter. “Nevertheless, there were some non-caveated agreements like a five-bedroom unit in Hills (a real estate high-class condominium on Cairnhill Circle) which was said to be sold at around $13 million,” he continues.
This brings the variety of GCB arrangements to 25 for the very first nine months of the year, surpassing the 20 that were estimated to have transacted for the whole of 2023. The total worth of GCBs marketed to date this year clocks in at $958.7 million.
Looking ahead of time, Yip believes sale and rental deals for the luxury apartment market could be higher in 4Q2024, driven by need from ultra-wealthy international residents in the UK finding to move ahead of recommended tax obligation change, featuring the abolishment of a tax regime that provides concessions for people with offshore capital.
In the rental market, the overall ordinary monthly lease of upscale non-landed homes grew 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 rental fee for this classification expanding at a quicker rate of 3.6% to hit $18,389 monthly throughout the quarter.
“As a result of the possible adjustment to the tax status of some 74,000 non-domiciled residents in the UK, some of these ultra-wealthy foreign residents might move abroad to safeguard their possessions. The nations under consideration include Dubai, Italy, Singapore and Switzerland,” Yip discusses.
The luxury apartment industry saw a downturn in sales in 3Q2024, according to information compiled by Huttons Asia. In its latest Prestige Report that monitors the high-end residential market, the consultancy states an estimated 55 luxury non-landed homes– which it defines as apartment units located in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and above– were offered in 3Q2024 for $407.7 million. This stands for a 3.5% decrease in transactions quantity and a 15.5% decrease in sales value compared to the 57 high-end apartment units sold for $482.5 million in 2Q2024.
On a y-o-y basis, deluxe condo sales quantity is up 48.6% in 3Q2024, while sales 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.
