Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The greatest high-end condo sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The property project on Gilstead Street by Kheng Leong Corporation additionally saw the 2nd and third-largest deals during the quarter. The units marketed are both 4,209 sq ft houses that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) respectively in September.
The largest GCB sell 3Q2024 was a real estate in Tanglin Hill that was apparently cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
“Because of the potential change to the tax status of some 74,000 non-domiciled residents in the UK, some of these ultra-wealthy international locals may move abroad to safeguard their properties. The nations under consideration include Dubai, Italy, Singapore and Switzerland,” Yip explains.
Yip notes that there were eight deluxe non-landed homes negotiated at $10 million and above in 3Q2024, that is 2 less than the 10 offers logged in the last quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hills (a real estate luxury condo on Cairnhill Circle) which was stated to be cost around $13 million,” he proceeds.
Pinetree Hill showflat location
This brings the variety of GCB arrangements to 25 for the initial 9 months of the year, going beyond the 20 that were estimated to have worked out for the whole of 2023. The complete worth of GCBs sold to day this year clocks in at $958.7 million.
In the GCB leasing market, the leading leasing deal in 3Q2024 was for a GCB in Chatsworth Park that brought a monthly rent of $120,000.
On a y-o-y basis, high-end condominium sales number is up 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling procedures days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
The Good Class Bungalow (GCB) market additionally saw a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The bungalows offered in 3Q2024 fetched a total amount of $541.2 million, 80.9% greater q-o-q.
Looking forward, Yip believes sale and rental transactions for the upscale condo market could be greater in 4Q2024, steered by demand from ultra-wealthy foreign residents in the UK seeking to transfer ahead of recommended tax change, involving the abolishment of a tax regime that gives concessions for residents with offshore wealth.
The luxury apartment market saw a decrease in sales in 3Q2024, according to information compiled by Huttons Asia. In its newest Prestige Report that monitors the high-end non commercial market, the consultancy states a projected 55 deluxe non-landed homes– which it defines as apartment units located in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and above– were offered in 3Q2024 for $407.7 million. This represents a 3.5% decrease in sales amount and a 15.5% decline in sales worth matched up to the 57 high-end condominium units sold for $482.5 million in 2Q2024.
Nevertheless, the figures reveal a significant development compared to the 37 high-class apartment units sold for $295.8 million that Huttons announced in 3Q2023. During 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%, in addition to an anti-money laundering crackdown in August 2023.
Yip notices that enquiries in the luxury apartment market have boosted, with lots of originating from newly-minted Long-term Citizens (PRs) and residents who had actually gotten their PR or citizenship in 2023 following the increase in ABSD. “A number of them bought a luxury non-landed home upon approved of their PR or nationality,” he claims.
In the leasing market, the total ordinary monthly lease of expensive non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was even more attention in four-bedroom high-end condo units, with the ordinary rent for this group expanding at a quicker speed of 3.6% to reach $18,389 per month throughout the quarter.
