Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The largest luxury 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 project on Gilstead Street by Kheng Leong Co additionally saw the 2nd and third-largest deals throughout the quarter. The units sold 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.
On a y-o-y basis, luxury apartment sales quantity is raise 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
Yip notices that enquiries in the deluxe condominium market have actually increased, with numerous coming from newly-minted Long-term Residents (PRs) and people who had actually gotten their PR or citizenship in 2023 following the hike in ABSD. “A lot of them bought a luxury non-landed home upon approved of their PR or nationality,” he claims.
The Good Class Bungalow (GCB) market likewise saw a pick-up in action in 3Q2024. An estimated 12 GCBs were sold last quarter, up from eight GCBs in 2024. The bungalows offered in 3Q2024 fetched a total amount of $541.2 million, 80.9% greater q-o-q.
The biggest GCB handle 3Q2024 was a real estate in Tanglin Hill that was apparently cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
“Due to the possible adjustment to the tax standing of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy international people may move abroad to safeguard their possessions. The nations under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip says.
In the GCB leasing market, the top leasing offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month rental fee of $120,000.
Yip marks that there were eight luxury non-landed homes transacted at $10 million and over in 3Q2024, that is 2 less than the 10 deals logged in the recent quarter. “Nevertheless, there were some non-caveated deals like a five-bedroom unit in Hills (a property luxurious flat on Cairnhill Circle) which was stated to be sold at around $13 million,” he continues.
This brings the variety of GCB transactions to 25 for the first nine months of the year, going beyond the 20 that were approximated to have actually worked out for the entire of 2023. The overall worth of GCBs marketed to day this year appear at $958.7 million.
The deluxe condo industry saw a decrease in revenues in 3Q2024, according to data compiled by Huttons Asia. In its most current Prestige Report that monitors the high-end non commercial market, the consultancy states a calculated 55 deluxe non-landed homes– which it defines as condo units found in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and above– were offered in 3Q2024 for $407.7 million. This represents a 3.5% downturn in transactions amount and a 15.5% decrease in sales value matched up to the 57 luxury condo units cost $482.5 million in 2Q2024.
Looking ahead of time, Yip thinks sale and rental transactions for the luxury flat market could be greater in 4Q2024, driven by need from ultra-wealthy international people in the UK seeking to transfer ahead of suggested tax reforms, featuring the abolishment of a tax obligation program that provides concessions for occupants with offshore assets.
In the leasing market, the overall typical monthly lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The report adds that there was more attention in four-bedroom luxury condominium units, with the average rent for this category growing at a quicker rate of 3.6% to hit $18,389 each month during the quarter.
Nonetheless, the figures show a substantial development compared to the 37 high-class condo units sold for $295.8 million that Huttons disclosed 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.
