Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest luxury 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 estate project on Gilstead Road by Kheng Leong Co likewise saw the 2nd 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.
This brings the number of GCB offers to 25 for the initial 9 months of the year, surpassing the 20 that were estimated to have negotiated for the entire of 2023. The overall value of GCBs offered to day this year clocks in at $958.7 million.
“As a result of the possible modification to the tax status of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy foreign people might emigrate to secure their possessions. The nations under consideration include Dubai, Italy, Singapore and Switzerland,” Yip explains.
The largest GCB handle 3Q2024 was a real property in Tanglin Hill that was reportedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
On a y-o-y basis, high-end apartment sales quantity is up 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, CEO of Huttons Asia.
Looking ahead of time, Yip believes sale and rental transactions for the upscale flat market could be greater in 4Q2024, generated by demand from ultra-wealthy international people in the UK seeking to relocate ahead of proposed tax change, featuring the abolishment of a tax program that gives concessions for residents with offshore wealth.
Nonetheless, the numbers reveal a substantial improvement compared to the 37 luxury condominium units cost $295.8 million that Huttons announced in 3Q2023. During the time, the marketplace was staggering from the April 2023 roll-out of cooling measures, including a hike in additional buyer’s stamp duty (ABSD) for foreigners to 60%, along with an anti-money laundering suppression in August 2023.
The high-end condominium industry saw a decrease in profits in 3Q2024, according to information gathered by Huttons Asia. In its most recent Prestige Report that monitors the premium residential market, the consultancy states a calculated 55 high-end non-landed homes– which it defines as apartment units placed 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 stands for a 3.5% decrease in transactions amount and a 15.5% decrease in sales value compared to the 57 luxury condo units cost $482.5 million in 2Q2024.
In the GCB rental market, the leading rental deal in 3Q2024 was for a GCB in Chatsworth Park that brought a regular monthly lease of $120,000.
In the rentals market, the total average monthly lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The record adds that there was even more attention in four-bedroom high-end condo units, with the ordinary rent for this category growing at a much faster rate of 3.6% to reach $18,389 monthly throughout the quarter.
Yip notices that enquiries in the deluxe apartment market have increased, with lots of originating from newly-minted Long-term Citizens (PRs) and residents who had applied for their PR or citizenship in 2023 following the hike in ABSD. “A number of them got a high end non-landed home upon approval of their PR or nationality,” he claims.
The Good Class Bungalow (GCB) market likewise viewed a pick-up in activity in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The cottages sold in 3Q2024 brought a total of $541.2 million, 80.9% higher q-o-q.
Yip indicates that there were 8 luxury non-landed homes negotiated at $10 million and over in 3Q2024, which is 2 less than the 10 deals logged in the last quarter. “Nonetheless, there were some non-caveated agreements like a five-bedroom unit in Hills (a property high-class condo on Cairnhill Circle) which was stated to be sold at around $13 million,” he continues.
