Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest luxury condominium 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 development on Gilstead Street by Kheng Leong Co additionally saw the 2nd and third-largest deals throughout the quarter. The units marketed 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.
In the GCB leasing market, the top leasing deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly rental fee of $120,000.
“Due to the possible modification to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, some of these ultra-wealthy international people might emigrate to secure their assets. The nations under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip says.
On a y-o-y basis, high-end condo 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 actions days,” states Mark Yip, CEO of Huttons Asia.
This brings the variety of GCB deals to 25 for the first nine months of the year, exceeding the 20 that were estimated to have actually negotiated for the whole of 2023. The overall value of GCBs sold to date this year clocks in at $958.7 million.
The Good Class Bungalow (GCB) market additionally viewed a pick-up in activity in 3Q2024. An estimated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The bungalows marketed in 3Q2024 fetched a total of $541.2 million, 80.9% greater q-o-q.
The biggest GCB deal in 3Q2024 was a property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
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Looking ahead of time, Yip thinks sale and rental activities for the upscale condominium market could be higher in 4Q2024, driven by demand from ultra-wealthy international people in the UK finding to relocate ahead of suggested tax change, including the abolishment of a tax program that gives concessions for residents with offshore assets.
Yip notices that queries in the luxury condo market have actually boosted, with lots of originating from newly-minted Long-term Homeowners (PRs) and citizens that had actually obtained their PR or citizenship in 2023 following the increase in ABSD. “Many of them purchased a high end non-landed home upon approved of their PR or nationality,” he claims.
Yip indicates that there were 8 luxury non-landed homes settled at $10 million and over in 3Q2024, which is two less than the 10 deals visited the last quarter. “However, there were some non-caveated arrangements like a five-bedroom unit in Hills (a freehold high-class condo on Cairnhill Circle) which was stated to be cost around $13 million,” he continues.
The high-end condo market saw a downturn in profits in 3Q2024, according to information compiled by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy says a projected 55 luxury non-landed homes– which it specifies as condo units placed in the Core Central Region that are sizing from 2,000 sq ft and valued at $5 million and over– were offered in 3Q2024 for $407.7 million. This represents a 3.5% decrease in transactions quantity and a 15.5% decline in sales worth compared to the 57 high-end apartment units cost $482.5 million in 2Q2024.
Nevertheless, the figures present a considerable enhancement compared to the 37 high-class apartment units cost $295.8 million that Huttons reported in 3Q2023. At the time, the marketplace was reeling from the April 2023 roll-out of cooling down measures, including a hike in additional buyer’s stamp duty (ABSD) for immigrants to 60%, along with an anti-money laundering crackdown in August 2023.
In the leasing market, the total typical monthly rental fee of luxury non-landed homes increased 2.7% q-o-q to $14,932. The report adds that there was even more attention in four-bedroom luxury condo units, with the typical lease for this classification growing at a quicker pace of 3.6% to hit $18,389 monthly throughout the quarter.
