Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The luxury apartment market saw a decline in sales in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the premium non commercial market, the consultancy claims an estimated 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 valued at $5 million and over– were offered in 3Q2024 for $407.7 million. This represents a 3.5% downturn in transactions volume and a 15.5% decline in sales worth matched up to the 57 high-end condo units sold for $482.5 million in 2Q2024.
Yip indicates that there were eight deluxe non-landed homes transacted at $10 million and over in 3Q2024, which is 2 less than the 10 deals logged in the last quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hills (a property luxurious condo on Cairnhill Circle) that was stated to be sold at around $13 million,” he proceeds.
Yip observes that enquiries in the high-end condo market have enhanced, with many originating from newly-minted Permanent Locals (PRs) and residents who had actually obtained their PR or citizenship in 2023 following the hike in ABSD. “A number of them got a luxury non-landed home upon confirmation of their PR or citizenship,” he claims.
The largest GCB deal in 3Q2024 was a real estate in Tanglin Hill that was supposedly cost $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
In the rental market, the total ordinary regular monthly lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was more attention in four-bedroom deluxe apartment units, with the ordinary rental fee for this classification expanding at a quicker rate of 3.6% to hit $18,389 per month throughout the quarter.
Looking forward, Yip believes sale and rental activities for the high-end condo market could be greater in 4Q2024, driven by demand from ultra-wealthy foreign locals in the UK finding to relocate ahead of recommended tax change, involving the abolishment of a tax obligation program that gives concessions for residents with offshore wealth.
Nevertheless, the figures show a considerable enhancement contrasted to the 37 high-class condominium units cost $295.8 million that Huttons reported in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling down measures, 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 most significant deluxe 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 freehold project on Gilstead Street by Kheng Leong Corporation additionally saw the second and third-largest deals throughout the quarter. The units offered are both 4,209 sq ft houses that fetched $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
In the GCB rental market, the top rental deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly rent of $120,000.
This brings the variety of GCB deals to 25 for the very first nine months of the year, going beyond the 20 that were estimated to have negotiated for the entire of 2023. The overall value of GCBs sold to day this year clocks in at $958.7 million.
On a y-o-y basis, deluxe apartment sales volume is raise 48.6% in 3Q2024, whilst 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 Good Class Bungalow (GCB) market likewise observed a pick-up in activity in 3Q2024. An estimated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The bungalows offered in 3Q2024 fetched an overall of $541.2 million, 80.9% higher q-o-q.
“Because of the possible adjustment to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, some of these ultra-wealthy foreign locals might move abroad to protect their possessions. The nations present consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
