Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The most significant GCB handle 3Q2024 was a property in Tanglin Hill that was reportedly cost $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
The Good Class Bungalow (GCB) market additionally observed a pick-up in action in 3Q2024. An approximated 12 GCBs were sold last quarter, up from eight GCBs in 2024. The cottages offered in 3Q2024 fetched a total amount of $541.2 million, 80.9% higher q-o-q.
On a y-o-y basis, high-end condo sales quantity is raise 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling measures days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
The biggest luxury apartment 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 property development on Gilstead Road by Kheng Leong Corporation likewise saw the 2nd and third-largest deals throughout the quarter. The units sold are both 4,209 sq ft houses that fetched $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
In the GCB leasing market, the top leasing offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly rental fee of $120,000.
Yip observes that queries in the deluxe apartment market have actually raised, with several coming from newly-minted Permanent Residents (PRs) and residents who had actually gotten their PR or citizenship last year following the increase in ABSD. “Most of them bought a luxurious non-landed home upon confirmation of their PR or nationality,” he states.
In the leasing market, the overall ordinary monthly rental fee of expensive non-landed homes grew 2.7% q-o-q to $14,932. The report includes that there was even more interest in four-bedroom high-end apartment units, with the ordinary rental fee for this group expanding at a quicker speed of 3.6% to hit $18,389 each month throughout the quarter.
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This brings the variety of GCB offers to 25 for the first nine months of the year, exceeding the 20 that were estimated to have actually transacted for the entire of 2023. The complete worth of GCBs offered to date this year clocks in at $958.7 million.
Nevertheless, the numbers present a substantial improvement contrasted to the 37 high-end condo units cost $295.8 million that Huttons disclosed in 3Q2023. During the time, the marketplace was staggering from the April 2023 roll-out of cooling down 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.
“As a result of the potential change to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy foreign people might emigrate to safeguard their assets. The countries present consist of Dubai, Italy, Singapore and Switzerland,” Yip says.
Yip indicates that there were 8 high-end non-landed homes negotiated at $10 million and over in 3Q2024, that is two less than the 10 offers logged in the last quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hilltops (a freehold luxurious condo unit on Cairnhill Circle) that was said to be sold at around $13 million,” he continues.
The deluxe condominium market saw a downturn in sales in 3Q2024, according to information collected by Huttons Asia. In its most current Prestige Report that monitors the premium non commercial market, the consultancy says an estimated 55 deluxe non-landed homes– which it specifies as condo units found in the Core Central Region that are sizing from 2,000 sq ft and priced at $5 million and above– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% decline in sales volume and a 15.5% decline in sales value compared to the 57 high-end condominium units sold for $482.5 million in 2Q2024.
Looking ahead, Yip thinks sale and rental transactions for the upscale condominium market could be greater in 4Q2024, generated by demand from ultra-wealthy international locals in the UK seeking to move ahead of suggested tax obligation change, involving the abolishment of a tax program that provides concessions for occupants with offshore wealth.
