Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the GCB rental market, the leading leasing deal in 3Q2024 was for a GCB in Chatsworth Park that brought a monthly lease of $120,000.
This brings the number of GCB transactions to 25 for the first 9 months of the year, going beyond the 20 that were approximated to have actually negotiated for the entire of 2023. The total value of GCBs offered to day this year appear at $958.7 million.
On a y-o-y basis, high-end condominium sales quantity is raise 48.6% in 3Q2024, whilst sales value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling measures days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
Nonetheless, the figures show a significant development contrasted to the 37 high-end condominium units cost $295.8 million that Huttons announced in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling steps, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, along with an anti-money laundering suppression in August 2023.
The Good Class Bungalow (GCB) market also observed a pick-up in action in 3Q2024. An estimated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The cottages sold in 3Q2024 brought an overall of $541.2 million, 80.9% greater q-o-q.
Looking forward, Yip thinks sale and rental deals for the luxury condominium market could be higher in 4Q2024, steered by demand from ultra-wealthy foreign individuals in the UK finding to relocate ahead of suggested tax reforms, featuring the abolishment of a tax regime that provides concessions for residents with offshore capital.
The biggest luxury apartment 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 Street by Kheng Leong Corporation also saw the second 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) specifically in September.
The luxury condominium industry saw a decline in revenues in 3Q2024, according to data gathered by Huttons Asia. In its latest Prestige Report that monitors the high-end non commercial market, the consultancy claims a calculated 55 deluxe non-landed homes– which it defines as condo units located in the Core Central Region that are sizing from 2,000 sq ft and valued at $5 million and above– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% decrease in sales quantity and a 15.5% decrease in sales worth compared to the 57 deluxe condo units cost $482.5 million in 2Q2024.
The biggest GCB sell 3Q2024 was a real estate in Tanglin Hill that was reportedly sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
Yip indicates that there were eight high-end non-landed homes settled at $10 million and over in 3Q2024, that is two less than the 10 offers logged in the last quarter. “Nonetheless, there were some non-caveated deals like a five-bedroom unit in Hills (a real estate luxury condo on Cairnhill Circle) that was stated to be sold at around $13 million,” he continues.
In the leasing market, the overall average month-to-month lease of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The report adds that there was more attention in four-bedroom luxury condo units, with the ordinary rental fee for this group growing at a much faster rate of 3.6% to hit $18,389 monthly throughout the quarter.
“Due to the possible modification to the tax obligation standing of some 74,000 non-domiciled dwellers in the UK, a few of these ultra-wealthy foreign residents may emigrate to protect their assets. The states present consist of Dubai, Italy, Singapore and Switzerland,” Yip says.
Yip sees that queries in the deluxe condominium market have actually raised, with several coming from newly-minted Permanent Homeowners (PRs) and people that had requested their PR or citizenship in 2023 following the hike in ABSD. “Much of them acquired a luxurious non-landed home upon approval of their PR or citizenship,” he says.
