Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The Good Class Bungalow (GCB) market additionally saw a pick-up in activity in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows sold in 3Q2024 brought an overall 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 month-to-month rental fee of $120,000.
Looking forward, Yip thinks sale and rental transactions for the luxury apartment market could be greater in 4Q2024, generated by need from ultra-wealthy foreign people in the UK pursuing to relocate ahead of suggested tax reforms, including the abolishment of a tax obligation program that offers concessions for occupants with offshore capital.
“As a result of the possible modification to the tax obligation status of some 74,000 non-domiciled tenants in the UK, a few of these ultra-wealthy foreign people may emigrate to protect their possessions. The countries under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip says.
The largest luxury condominium 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 Street by Kheng Leong Co likewise saw the second 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) respectively in September.
The largest GCB handle 3Q2024 was a real estate in Tanglin Hill that was reportedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Nonetheless, the numbers show a considerable improvement contrasted to the 37 luxury apartment units cost $295.8 million that Huttons announced in 3Q2023. At the time, the marketplace was reeling from the April 2023 roll-out of cooling down steps, 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.
Yip observes that enquiries in the high-end apartment market have increased, with numerous originating from newly-minted Long-term Homeowners (PRs) and people that had gotten their PR or citizenship in 2023 following the hike in ABSD. “Much of them got a luxurious non-landed home upon confirmation of their PR or citizenship,” he claims.
Blossoms By The Park Singapore
Yip notes that there were 8 luxury non-landed homes settled at $10 million and over in 3Q2024, which is 2 less than the 10 deals logged in the last quarter. “Nonetheless, there were some non-caveated deals like a five-bedroom unit in Hilltops (a freehold luxurious condominium on Cairnhill Circle) that was stated to be sold at around $13 million,” he proceeds.
On a y-o-y basis, high-end condominium sales quantity is raise 48.6% in 3Q2024, while sales worth is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling measures days,” says Mark Yip, CEO of Huttons Asia.
This brings the number of GCB deals to 25 for the very first nine months of the year, going beyond the 20 that were estimated to have negotiated for the entire of 2023. The complete value of GCBs offered to day this year clocks in at $958.7 million.
In the rental market, the general ordinary regular monthly rental fee of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The record adds that there was even more attention in four-bedroom high-end condo units, with the ordinary lease for this group growing at a faster pace of 3.6% to reach $18,389 per month throughout the quarter.
The luxury apartment market saw a downturn in sales in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the premium non commercial market, the consultancy claims a projected 55 luxury non-landed homes– which it specifies as apartment units placed in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and over– were sold in 3Q2024 for $407.7 million. This represents a 3.5% decrease in transactions amount and a 15.5% decrease in sales value matched up to the 57 high-end condominium units cost $482.5 million in 2Q2024.
