Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The most significant luxury condo handle 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The freehold development on Gilstead Street by Kheng Leong Co also 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.
This brings the number of GCB transactions to 25 for the first nine months of the year, exceeding the 20 that were approximated to have actually negotiated for the entire of 2023. The complete value of GCBs offered to day this year clocks in at $958.7 million.
The Good Class Bungalow (GCB) market likewise viewed a pick-up in action in 3Q2024. An estimated 12 GCBs were offered 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.
On a y-o-y basis, high-end apartment sales number is up 48.6% in 3Q2024, whilst sales value is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling steps days,” claims Mark Yip, Chief Executive Officer of Huttons Asia.
Nonetheless, the figures reveal a significant improvement compared to the 37 high-class condominium units sold for $295.8 million that Huttons announced in 3Q2023. At the time, the marketplace was reeling from the April 2023 roll-out of cooling down actions, including a hike in additional buyer’s stamp duty (ABSD) for immigrants to 60%, in addition to an anti-money laundering crackdown in August 2023.
The biggest GCB sell 3Q2024 was a real property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Looking ahead, Yip thinks sale and rental activities for the upscale apartment market could be greater in 4Q2024, generated by need from ultra-wealthy foreign individuals in the UK finding to relocate ahead of suggested tax reforms, featuring the abolishment of a tax program that provides concessions for residents with offshore assets.
In the leasing market, the overall typical monthly rent of luxury non-landed homes increased 2.7% q-o-q to $14,932. The statement includes that there was even more attention in four-bedroom deluxe condo units, with the average rent for this category growing at a faster speed of 3.6% to hit $18,389 monthly during the quarter.
Yip observes that enquiries in the deluxe condo market have actually boosted, with numerous originating from newly-minted Long-term Residents (PRs) and people that had requested their PR or citizenship last year following the hike in ABSD. “Most of them purchased a high end non-landed home upon approval of their PR or citizenship,” he claims.
Yip marks that there were 8 high-end non-landed homes settled at $10 million and over in 3Q2024, which is two less than the 10 offers visited the last quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hills (a real estate luxurious flat on Cairnhill Circle) that was said to be cost around $13 million,” he proceeds.
The high-end condo industry saw a decline in revenues in 3Q2024, according to information collected by Huttons Asia. In its most recent Prestige Report that monitors the high-end residential market, the consultancy claims a calculated 55 high-end non-landed homes– which it specifies as condominium units located in the Core Central Region that are sized from 2,000 sq ft and valued at $5 million and over– were offered in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in sales quantity and a 15.5% decline in sales worth matched up to the 57 high-end condominium units cost $482.5 million in 2Q2024.
“Because of the potential change to the tax obligation standing of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy foreign people may emigrate to protect their properties. The states under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
In the GCB leasing market, the top rental offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month rental fee of $120,000.
