Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The deluxe condo market saw a decrease in revenues in 3Q2024, according to data collected by Huttons Asia. In its latest Prestige Report that monitors the premium residential market, the consultancy says an estimated 55 luxury non-landed homes– which it defines as apartment units placed in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and above– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% downturn in sales amount and a 15.5% decrease in sales value compared to the 57 luxury condominium units sold for $482.5 million in 2Q2024.
This brings the number of GCB deals to 25 for the very first 9 months of the year, exceeding the 20 that were approximated to have negotiated for the entire of 2023. The overall worth of GCBs marketed to day this year appear at $958.7 million.
In the GCB leasing market, the top service deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly rent of $120,000.
The largest GCB handle 3Q2024 was a real property in Tanglin Hill that was reportedly cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
The most significant high-end 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 also saw the second and third-largest deals throughout 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) respectively in September.
“Because of the possible adjustment to the tax status of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy foreign residents might emigrate to secure their possessions. The states present involve Dubai, Italy, Singapore and Switzerland,” Yip discusses.
In the rentals market, the total average regular monthly rent of upscale non-landed homes increased 2.7% q-o-q to $14,932. The record includes that there was more interest in four-bedroom deluxe condominium units, with the average lease for this classification expanding at a quicker speed of 3.6% to hit $18,389 each month throughout the quarter.
Yip marks that there were eight luxury non-landed homes negotiated at $10 million and over in 3Q2024, which is two less than the 10 deals visited the last quarter. “Nonetheless, there were some non-caveated arrangements like a five-bedroom unit in Hilltops (a property luxury condo unit on Cairnhill Circle) which was stated to be cost around $13 million,” he continues.
Emerald Of Katong Jalan Tembusu Road
Yip notices that queries in the deluxe condo market have increased, with lots of coming from newly-minted Permanent Citizens (PRs) and people that had actually obtained their PR or citizenship in 2023 following the hike in ABSD. “Most of them purchased a luxurious non-landed home upon confirmation of their PR or nationality,” he states.
Looking forward, Yip believes sale and rental transactions for the high-end condominium market could be higher in 4Q2024, steered by need from ultra-wealthy international people in the UK seeking to relocate ahead of recommended tax change, involving the abolishment of a tax obligation regime that offers concessions for people with offshore wealth.
On a y-o-y basis, deluxe apartment sales quantity 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 procedures days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
Nonetheless, the figures show a significant development compared to the 37 luxury condominium units cost $295.8 million that Huttons announced in 3Q2023. During the time, the market was reeling from the April 2023 roll-out of cooling down measures, including an increase in additional buyer’s stamp duty (ABSD) for immigrants to 60%, together with an anti-money laundering suppression in August 2023.
The Good Class Bungalow (GCB) market additionally saw a pick-up in action in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows marketed in 3Q2024 fetched a total amount of $541.2 million, 80.9% higher q-o-q.
