Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The deluxe condominium market saw a decrease in profits in 3Q2024, according to data gathered by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy states an estimated 55 luxury non-landed homes– which it defines as apartment units placed in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and over– were offered in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in transactions volume and a 15.5% decline in sales worth matched up to the 57 deluxe apartment units sold for $482.5 million in 2Q2024.
“Because of the potential modification to the tax standing of some 74,000 non-domiciled tenants in the UK, some of these ultra-wealthy international residents might emigrate to safeguard their properties. The states present involve Dubai, Italy, Singapore and Switzerland,” Yip says.
Nonetheless, the numbers show a substantial improvement contrasted to the 37 luxury condo units sold for $295.8 million that Huttons announced in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling procedures, 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 most significant high-end apartment handle 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The estate development on Gilstead Road by Kheng Leong Co additionally saw the 2nd and third-largest deals during the quarter. The units marketed 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.
Yip observes that enquiries in the deluxe condo market have increased, with many originating from newly-minted Permanent Homeowners (PRs) and residents that had made an application for their PR or citizenship last year following the hike in ABSD. “A number of them purchased a luxury non-landed home upon approved of their PR or nationality,” he claims.
The Good Class Bungalow (GCB) market also saw a pick-up in action in 3Q2024. An estimated 12 GCBs were sold last quarter, up from 8 GCBs in 2024. The cottages marketed in 3Q2024 fetched an overall of $541.2 million, 80.9% greater q-o-q.
This brings the number of GCB arrangements to 25 for the very first nine months of the year, going beyond the 20 that were estimated to have actually worked out for the entire of 2023. The complete value of GCBs offered to day this year appear at $958.7 million.
In the GCB rental market, the top service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly lease of $120,000.
Yip indicates that there were 8 luxury non-landed homes settled at $10 million and over in 3Q2024, that is 2 less than the 10 offers visited the recent quarter. “Nonetheless, there were some non-caveated deals like a five-bedroom unit in Hilltops (a freehold luxurious condominium on Cairnhill Circle) which was said to be cost around $13 million,” he proceeds.
Looking ahead of time, Yip thinks sale and rental transactions for the luxury condo market could be higher in 4Q2024, generated by need from ultra-wealthy foreign residents in the UK pursuing to relocate ahead of proposed tax change, featuring the abolishment of a tax obligation regime that provides concessions for occupants with offshore capital.
On a y-o-y basis, luxury condominium sales number is raise 48.6% in 3Q2024, while sales value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
In the rentals market, the overall ordinary monthly lease of expensive non-landed homes grew 2.7% q-o-q to $14,932. The record adds that there was more interest in four-bedroom deluxe condo units, with the average rental fee for this group growing at a faster pace of 3.6% to hit $18,389 monthly throughout the quarter.
The biggest GCB deal in 3Q2024 was a property in Tanglin Hill that was apparently cost $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
