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 property project on Gilstead Road by Kheng Leong Corporation 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) specifically in September.
Yip marks that there were eight luxury non-landed homes negotiated at $10 million and over in 3Q2024, that is two less than the 10 deals logged in the last quarter. “Nonetheless, there were some non-caveated arrangements like a five-bedroom unit in Hills (a real estate luxurious condo on Cairnhill Circle) that was claimed to be sold at around $13 million,” he proceeds.
“As a result of the possible adjustment to the tax obligation standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy foreign locals may emigrate to secure their assets. The countries under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip discusses.
On a y-o-y basis, luxury condo 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 steps days,” says Mark Yip, CEO of Huttons Asia.
In the GCB leasing market, the leading service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly lease of $120,000.
The biggest GCB sell 3Q2024 was a real estate in Tanglin Hill that was reportedly cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Nonetheless, the figures present a significant improvement contrasted to the 37 luxury condo units sold for $295.8 million that Huttons reported in 3Q2023. During the time, the marketplace was staggering from the April 2023 roll-out of cooling measures, including a hike in additional buyer’s stamp duty (ABSD) for foreigners to 60%, together with an anti-money laundering crackdown in August 2023.
Looking ahead, Yip thinks sale and rental activities for the high-end condominium market could be higher in 4Q2024, steered by need from ultra-wealthy foreign residents in the UK pursuing to relocate ahead of recommended tax change, including the abolishment of a tax obligation regime that provides concessions for occupants with offshore wealth.
Aurelle of Tampines Tampines Street 62
The Good Class Bungalow (GCB) market also observed a pick-up in action in 3Q2024. An estimated 12 GCBs were sold last quarter, up from eight GCBs in 2024. The bungalows sold in 3Q2024 fetched an overall of $541.2 million, 80.9% higher q-o-q.
The deluxe apartment industry saw a decrease in profits in 3Q2024, according to data gathered by Huttons Asia. In its latest Prestige Report that monitors the premium non commercial market, the consultancy states a calculated 55 high-end non-landed homes– which it specifies as condo units placed in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and above– were offered in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in sales amount and a 15.5% decrease in sales value matched up to the 57 luxury condo units cost $482.5 million in 2Q2024.
In the rental market, the overall ordinary month-to-month lease of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The statement includes that there was even more interest in four-bedroom luxury condo units, with the average rent for this classification growing at a faster speed of 3.6% to hit $18,389 monthly during the quarter.
This brings the number of GCB transactions to 25 for the very first 9 months of the year, exceeding the 20 that were estimated to have actually negotiated for the entire of 2023. The overall worth of GCBs offered to date this year appear at $958.7 million.
Yip sees that enquiries in the luxury apartment market have increased, with numerous originating from newly-minted Long-term Homeowners (PRs) and people that had actually gotten their PR or citizenship last year following the hike in ABSD. “Much of them bought a luxurious non-landed home upon approval of their PR or citizenship,” he says.
