Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The Good Class Bungalow (GCB) market also observed a pick-up in activity in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows marketed in 3Q2024 brought a total of $541.2 million, 80.9% greater q-o-q.
In the leasing market, the general typical regular monthly rent of upscale non-landed homes increased 2.7% q-o-q to $14,932. The record includes that there was even more attention in four-bedroom high-end condominium units, with the average lease for this classification growing at a much faster speed of 3.6% to hit $18,389 each month during the quarter.
The most significant deluxe condominium 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 development on Gilstead Road by Kheng Leong Corporation also saw the 2nd and third-largest deals throughout 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) respectively in September.
“As a result of the possible change to the tax status of some 74,000 non-domiciled tenants in the UK, a few of these ultra-wealthy international residents may move abroad to safeguard their assets. The countries under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip says.
Nevertheless, the numbers show a substantial improvement contrasted to the 37 high-class apartment units cost $295.8 million that Huttons reported in 3Q2023. At the time, the market was staggering from the April 2023 roll-out of cooling down steps, including an increase in additional buyer’s stamp duty (ABSD) for immigrants to 60%, in addition to an anti-money laundering crackdown in August 2023.
The largest GCB deal in 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.
Yip marks that there were eight high-end non-landed homes transacted at $10 million and over in 3Q2024, that is two less than the 10 deals logged in the recent quarter. “Nonetheless, there were some non-caveated agreements like a five-bedroom unit in Hills (a real estate high-class condominium on Cairnhill Circle) that was claimed to be cost around $13 million,” he continues.
In the GCB leasing market, the top service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month rental fee of $120,000.
Looking ahead of time, Yip believes sale and rental transactions for the high-end condo market could be higher in 4Q2024, generated by need from ultra-wealthy foreign residents in the UK finding to transfer ahead of proposed tax reforms, featuring the abolishment of a tax program that gives concessions for occupants with offshore assets.
This brings the number of GCB offers to 25 for the very first nine months of the year, exceeding the 20 that were approximated to have transacted 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, luxury apartment sales quantity is raise 48.6% in 3Q2024, while sales worth is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, CEO of Huttons Asia.
The high-end apartment industry saw a decrease in sales in 3Q2024, according to data collected by Huttons Asia. In its most recent Prestige Report that monitors the premium non commercial market, the consultancy says a calculated 55 high-end non-landed homes– which it specifies as condo units located in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and over– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in transactions volume and a 15.5% decline in sales worth compared to the 57 high-end condominium units sold for $482.5 million in 2Q2024.
Yip observes that enquiries in the high-end condominium market have actually raised, with lots of originating from newly-minted Long-term Locals (PRs) and residents that had obtained their PR or citizenship in 2023 following the hike in ABSD. “A lot of them got a high end non-landed home upon approved of their PR or nationality,” he claims.
