Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The Good Class Bungalow (GCB) market also observed a pick-up in action in 3Q2024. An estimated 12 GCBs were marketed last quarter, up from eight GCBs in 2024. The bungalows sold in 3Q2024 fetched a total of $541.2 million, 80.9% greater q-o-q.
Looking forward, Yip thinks sale and rental activities for the high-end condominium market could be greater in 4Q2024, steered by demand from ultra-wealthy foreign individuals in the UK finding to transfer ahead of recommended tax change, including the abolishment of a tax regime that gives concessions for people with offshore capital.
This brings the number of GCB transactions to 25 for the very first 9 months of the year, surpassing the 20 that were estimated to have worked out for the entire of 2023. The complete worth of GCBs offered to date this year appear at $958.7 million.
The largest GCB handle 3Q2024 was a real estate in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Yip notices that queries in the deluxe condo market have raised, with lots of originating from newly-minted Long-term Citizens (PRs) and people that had obtained their PR or citizenship in 2023 following the hike in ABSD. “Many of them purchased a luxurious non-landed home upon approval of their PR or citizenship,” he states.
The biggest deluxe apartment 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 development on Gilstead Road by Kheng Leong Co additionally saw the 2nd and third-largest deals throughout the quarter. The units offered 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.
In the leasing market, the overall average monthly rental fee of luxury non-landed homes increased 2.7% q-o-q to $14,932. The record adds that there was more attention in four-bedroom high-end condo units, with the ordinary lease for this category growing at a quicker speed of 3.6% to hit $18,389 each month during the quarter.
In the GCB leasing market, the top leasing deal in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month rent of $120,000.
The luxury apartment industry saw a decrease in sales in 3Q2024, according to information compiled by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy claims a projected 55 high-end non-landed homes– which it specifies as apartment units located in the Core Central Region that are sizing from 2,000 sq ft and valued at $5 million and above– were sold in 3Q2024 for $407.7 million. This represents a 3.5% decline in transactions volume and a 15.5% decline in sales value compared to the 57 deluxe condo units sold for $482.5 million in 2Q2024.
Nevertheless, the numbers reveal a considerable enhancement contrasted to the 37 luxury condo units cost $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 an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, together with an anti-money laundering suppression in August 2023.
Yip notes that there were 8 luxury non-landed homes negotiated at $10 million and above in 3Q2024, that is two less than the 10 deals visited the previous quarter. “Nevertheless, there were some non-caveated arrangements like a five-bedroom unit in Hilltops (a freehold high-class flat on Cairnhill Circle) which was claimed to be sold at around $13 million,” he continues.
“Because of the potential change to the tax standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy foreign locals might move abroad to safeguard their properties. The states under consideration include Dubai, Italy, Singapore and Switzerland,” Yip reveals.
On a y-o-y basis, deluxe condominium sales number is up 48.6% in 3Q2024, whilst sales value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling steps days,” states Mark Yip, CEO of Huttons Asia.
