Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The luxury condominium market saw a decline in sales in 3Q2024, according to information collected by Huttons Asia. In its most recent Prestige Report that monitors the high-end residential market, the consultancy says a calculated 55 high-end non-landed homes– which it specifies as apartment units found in the Core Central Region that are sizing from 2,000 sq ft and priced at $5 million and above– were offered in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in transactions quantity and a 15.5% decrease in sales worth compared to the 57 deluxe apartment units cost $482.5 million in 2Q2024.
Yip marks that there were 8 high-end non-landed homes settled at $10 million and over in 3Q2024, that is 2 less than the 10 deals logged in the previous quarter. “Nevertheless, there were some non-caveated agreements like a five-bedroom unit in Hilltops (a real estate high-class condo unit on Cairnhill Circle) which was stated to be sold at around $13 million,” he continues.
The most significant deluxe condominium deal in 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 Street by Kheng Leong Corporation also saw the 2nd and third-largest deals during the quarter. The units marketed 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.
One Bernam MCC Land & HY Realty
Nonetheless, the numbers present a considerable improvement compared to the 37 high-class condominium units cost $295.8 million that Huttons disclosed in 3Q2023. At the time, the market was reeling from the April 2023 roll-out of cooling steps, including an increase in additional buyer’s stamp duty (ABSD) for immigrants to 60%, together with an anti-money laundering suppression in August 2023.
In the rental market, the general average monthly lease of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The record includes that there was even more attention in four-bedroom high-end condo units, with the average lease for this group growing at a quicker speed of 3.6% to reach $18,389 monthly during the quarter.
Yip sees that queries in the luxury condominium market have raised, with many coming from newly-minted Permanent Citizens (PRs) and citizens who had gotten their PR or citizenship last year following the increase in ABSD. “Much of them purchased a high end non-landed home upon approval of their PR or citizenship,” he claims.
Looking forward, Yip believes sale and rental deals for the luxury flat market could be higher in 4Q2024, driven by demand from ultra-wealthy foreign residents in the UK seeking to relocate ahead of suggested tax obligation change, featuring the abolishment of a tax obligation program that gives concessions for occupants with offshore assets.
The greatest GCB deal in 3Q2024 was a real estate in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
This brings the number of GCB arrangements to 25 for the first nine months of the year, surpassing the 20 that were approximated to have worked out for the whole of 2023. The overall worth of GCBs sold to day this year appear at $958.7 million.
On a y-o-y basis, high-end condominium sales number is raise 48.6% in 3Q2024, while sales market value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling procedures days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
The Good Class Bungalow (GCB) market likewise viewed a pick-up in activity in 3Q2024. An estimated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The cottages sold in 3Q2024 brought a total of $541.2 million, 80.9% greater q-o-q.
In the GCB rental market, the top rental deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly lease of $120,000.
“Due to the possible change to the tax obligation status of some 74,000 non-domiciled residents in the UK, some of these ultra-wealthy foreign residents may emigrate to protect their possessions. The countries present include Dubai, Italy, Singapore and Switzerland,” Yip discusses.
