Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the GCB rental market, the top rental deal in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month rent of $120,000.
The luxury condo industry saw a decline in profits in 3Q2024, according to information gathered by Huttons Asia. In its newest Prestige Report that monitors the high-end non commercial market, the consultancy claims a calculated 55 deluxe non-landed homes– which it defines as condo 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 sales volume and a 15.5% decline in sales worth compared to the 57 high-end apartment units sold for $482.5 million in 2Q2024.
On a y-o-y basis, deluxe condo sales number is raise 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling steps days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
Yip indicates that there were eight deluxe non-landed homes settled at $10 million and over in 3Q2024, which 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 Hills (a freehold luxurious condo unit on Cairnhill Circle) which was stated to be cost around $13 million,” he proceeds.
The greatest 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 Street by Kheng Leong Co likewise 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.
This brings the number of GCB transactions to 25 for the first 9 months of the year, exceeding the 20 that were approximated to have actually negotiated for the entire of 2023. The complete worth of GCBs sold to date this year appear at $958.7 million.
In the rentals market, the general ordinary regular monthly rental fee of upscale non-landed homes increased 2.7% q-o-q to $14,932. The report adds that there was even more attention in four-bedroom high-end condominium units, with the typical lease for this group growing at a quicker rate of 3.6% to reach $18,389 each month during the quarter.
“Due to the potential modification to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, some of these ultra-wealthy foreign locals might emigrate to safeguard their possessions. The states under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip discusses.
Looking forward, Yip believes sale and rental deals for the upscale condo market could be higher in 4Q2024, generated by need from ultra-wealthy foreign residents in the UK pursuing to move ahead of proposed tax obligation reforms, including the abolishment of a tax program that provides concessions for residents with offshore wealth.
The Good Class Bungalow (GCB) market likewise viewed a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The cottages marketed in 3Q2024 brought an overall of $541.2 million, 80.9% greater q-o-q.
Yip notices that enquiries in the high-end apartment market have increased, with several coming from newly-minted Permanent Locals (PRs) and residents that had applied for their PR or citizenship in 2023 following the increase in ABSD. “Most of them got a luxury non-landed home upon confirmation of their PR or nationality,” he says.
Nevertheless, the numbers reveal a significant enhancement contrasted to the 37 luxury condo units sold for $295.8 million that Huttons announced in 3Q2023. At the time, the market was reeling from the April 2023 roll-out of cooling down procedures, including a hike in additional buyer’s stamp duty (ABSD) for immigrants to 60%, along with an anti-money laundering crackdown in August 2023.
The most significant GCB sell 3Q2024 was a property in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
