Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
On a y-o-y basis, high-end apartment sales quantity is up 48.6% in 3Q2024, while sales worth is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
Yip notes that there were 8 high-end non-landed homes negotiated at $10 million and above in 3Q2024, which is two less than the 10 deals logged in the recent quarter. “Nevertheless, there were some non-caveated offers like a five-bedroom unit in Hilltops (a real estate luxurious condo unit on Cairnhill Circle) that was claimed to be cost around $13 million,” he proceeds.
In the GCB rental market, the top service deal in 3Q2024 was for a GCB in Chatsworth Park that brought a monthly lease of $120,000.
The greatest GCB deal in 3Q2024 was a property in Tanglin Hill that was reportedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Yip sees that enquiries in the deluxe condo market have boosted, with several originating from newly-minted Long-term Locals (PRs) and citizens who had actually applied for their PR or citizenship in 2023 following the hike in ABSD. “A number of them bought a high end non-landed home upon approved of their PR or citizenship,” he states.
The Good Class Bungalow (GCB) market likewise observed a pick-up in action in 3Q2024. An estimated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The bungalows offered in 3Q2024 brought an overall of $541.2 million, 80.9% greater q-o-q.
Nevertheless, the figures show a significant enhancement compared to the 37 high-class condo units sold for $295.8 million that Huttons disclosed in 3Q2023. During the time, the market was staggering from the April 2023 roll-out of cooling actions, including an increase in additional buyer’s stamp duty (ABSD) for immigrants to 60%, together with an anti-money laundering crackdown in August 2023.
“Because of the potential change to the tax obligation standing of some 74,000 non-domiciled dwellers in the UK, a few of these ultra-wealthy international people may move abroad to protect their properties. The states under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
In the rental market, the total ordinary monthly rental fee of expensive non-landed homes expanded 2.7% q-o-q to $14,932. The record adds that there was even more interest in four-bedroom deluxe condominium units, with the ordinary rent for this classification growing at a quicker rate of 3.6% to reach $18,389 per month throughout the quarter.
The Hill @ One North Kingsford Development
This brings the variety of GCB arrangements to 25 for the initial nine months of the year, going beyond the 20 that were estimated to have transacted for the entire of 2023. The total worth of GCBs offered to date this year appear at $958.7 million.
The deluxe condo market saw a decrease in sales in 3Q2024, according to data compiled by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy claims a projected 55 deluxe non-landed homes– which it defines as condominium units located in the Core Central Region that are sizing from 2,000 sq ft and valued at $5 million and over– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% decrease in sales quantity and a 15.5% decline in sales value compared to the 57 deluxe condo units sold for $482.5 million in 2Q2024.
The biggest deluxe condo 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 freehold project on Gilstead Road by Kheng Leong Corporation additionally 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.
Looking ahead of time, Yip thinks sale and rental transactions for the luxury flat market could be higher in 4Q2024, generated by demand from ultra-wealthy foreign individuals in the UK seeking to transfer ahead of suggested tax obligation reforms, involving the abolishment of a tax obligation program that offers concessions for occupants with offshore assets.
