Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest luxury apartment handle 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 Street by Kheng Leong Co also saw the 2nd and third-largest deals throughout the quarter. The units offered are both 4,209 sq ft apartments that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
Yip marks that there were eight deluxe non-landed homes settled at $10 million and over in 3Q2024, that is two less than the 10 offers visited the recent 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 cost around $13 million,” he proceeds.
On a y-o-y basis, deluxe apartment sales volume is raise 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling procedures days,” says Mark Yip, CEO of Huttons Asia.
The Good Class Bungalow (GCB) market additionally saw a pick-up in action in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from eight GCBs in 2024. The bungalows sold in 3Q2024 brought a total of $541.2 million, 80.9% greater q-o-q.
In the GCB rental market, the top service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month rental fee of $120,000.
The biggest GCB handle 3Q2024 was a real estate in Tanglin Hill that was reportedly cost $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
“Because of the possible modification to the tax obligation standing of some 74,000 non-domiciled residents in the UK, a few of these ultra-wealthy international people might move abroad to protect their possessions. The countries under consideration include Dubai, Italy, Singapore and Switzerland,” Yip says.
Nevertheless, the numbers present a substantial enhancement compared to the 37 luxury condo units sold for $295.8 million that Huttons disclosed in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling down actions, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, along with an anti-money laundering suppression in August 2023.
In the rentals market, the general typical month-to-month rent of expensive non-landed homes increased 2.7% q-o-q to $14,932. The statement includes that there was more attention in four-bedroom high-end condominium units, with the ordinary rental fee for this category growing at a quicker pace of 3.6% to hit $18,389 monthly throughout the quarter.
The deluxe condominium industry saw a decrease in sales in 3Q2024, according to information compiled by Huttons Asia. In its most current Prestige Report that monitors the premium non commercial market, the consultancy says a projected 55 luxury non-landed homes– which it specifies as condominium units found in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and over– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% decline in sales amount and a 15.5% decline in sales worth matched up to the 57 deluxe condominium units cost $482.5 million in 2Q2024.
Looking forward, Yip believes sale and rental deals for the luxury apartment market could be higher in 4Q2024, driven by demand from ultra-wealthy international individuals in the UK pursuing to move ahead of recommended tax reforms, featuring the abolishment of a tax program that offers concessions for people with offshore capital.
This brings the number of GCB deals to 25 for the initial 9 months of the year, surpassing the 20 that were approximated to have negotiated for the entire of 2023. The complete worth of GCBs sold to day this year appear at $958.7 million.
Yip observes that enquiries in the luxury condo market have increased, with lots of coming from newly-minted Long-term Citizens (PRs) and citizens that had obtained their PR or citizenship last year following the hike in ABSD. “Most of them purchased a luxurious non-landed home upon approved of their PR or nationality,” he says.
