Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest 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 freehold 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 fetched $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
Yip notes that there were eight deluxe non-landed homes transacted at $10 million and above in 3Q2024, that is two 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 freehold luxurious condo on Cairnhill Circle) that was said to be cost around $13 million,” he proceeds.
On a y-o-y basis, high-end condominium sales number is raise 48.6% in 3Q2024, while sales value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling measures days,” claims Mark Yip, CEO of Huttons Asia.
In the GCB rental market, the leading rental deal in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month rent of $120,000.
“Due to the potential adjustment to the tax standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy foreign locals might emigrate to safeguard their possessions. The countries present consist of Dubai, Italy, Singapore and Switzerland,” Yip explains.
The high-end condo market saw a decrease in sales in 3Q2024, according to information collected by Huttons Asia. In its latest Prestige Report that monitors the premium residential market, the consultancy claims a calculated 55 deluxe 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 sold in 3Q2024 for $407.7 million. This represents a 3.5% decrease in sales volume and a 15.5% decrease in sales worth compared to the 57 luxury condominium units cost $482.5 million in 2Q2024.
In the rentals market, the general typical monthly rental fee of expensive non-landed homes expanded 2.7% q-o-q to $14,932. The report adds that there was more interest in four-bedroom luxury condo units, with the typical rental fee for this category growing at a faster pace of 3.6% to reach $18,389 per month throughout the quarter.
The most significant GCB deal in 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.
The Good Class Bungalow (GCB) market additionally observed a pick-up in activity in 3Q2024. An estimated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows sold in 3Q2024 fetched a total of $541.2 million, 80.9% greater q-o-q.
Looking ahead of time, Yip thinks sale and rental activities for the high-end apartment market could be higher in 4Q2024, driven by demand from ultra-wealthy international individuals in the UK finding to transfer ahead of recommended tax reforms, featuring the abolishment of a tax program that gives concessions for occupants with offshore assets.
Nonetheless, the numbers show a considerable development compared to the 37 high-end condominium units cost $295.8 million that Huttons reported in 3Q2023. During the time, the market was reeling 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 crackdown in August 2023.
Yip sees that enquiries in the luxury condo market have actually boosted, with several coming from newly-minted Long-term Locals (PRs) and citizens that had requested their PR or citizenship in 2023 following the increase in ABSD. “Much of them bought a high end non-landed home upon approval of their PR or nationality,” he claims.
This brings the number of GCB transactions to 25 for the initial nine months of the year, exceeding the 20 that were estimated to have worked out for the whole of 2023. The complete worth of GCBs offered to date this year clocks in at $958.7 million.
