Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The most significant high-end 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 development on Gilstead Road by Kheng Leong Corporation likewise saw the second 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 biggest GCB deal in 3Q2024 was a property in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
“Due to the possible modification to the tax standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy foreign people might move abroad to guard their properties. The nations under consideration include Dubai, Italy, Singapore and Switzerland,” Yip reveals.
The high-end apartment industry saw a decline in revenues in 3Q2024, according to information gathered by Huttons Asia. In its most current Prestige Report that monitors the high-end residential market, the consultancy says a calculated 55 luxury non-landed homes– which it defines as condominium units located in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and above– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in sales volume and a 15.5% decline in sales worth matched up to the 57 luxury condo units sold for $482.5 million in 2Q2024.
This brings the variety of GCB deals to 25 for the initial nine months of the year, exceeding the 20 that were estimated to have worked out for the whole of 2023. The overall worth of GCBs offered to date this year clocks in at $958.7 million.
The Good Class Bungalow (GCB) market likewise observed a pick-up in activity in 3Q2024. An approximated 12 GCBs were sold last quarter, up from eight GCBs in 2024. The bungalows marketed in 3Q2024 brought a total of $541.2 million, 80.9% higher q-o-q.
Yip sees that queries in the high-end condo market have actually enhanced, with numerous coming from newly-minted Permanent Citizens (PRs) and people that had actually applied for their PR or citizenship in 2023 following the hike in ABSD. “Most of them got a luxury non-landed home upon approval of their PR or citizenship,” he says.
On a y-o-y basis, high-end condominium sales quantity is raise 48.6% in 3Q2024, whilst sales market value is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling procedures days,” claims Mark Yip, Chief Executive Officer of Huttons Asia.
In the leasing market, the total typical month-to-month lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was more interest in four-bedroom deluxe apartment units, with the typical lease for this group growing at a quicker speed of 3.6% to reach $18,389 per month during the quarter.
Looking ahead of time, Yip believes sale and rental deals for the luxury apartment market could be higher in 4Q2024, driven by demand from ultra-wealthy international people in the UK finding to move ahead of proposed tax obligation reforms, involving the abolishment of a tax obligation program that gives concessions for occupants with offshore wealth.
Yip indicates that there were eight luxury non-landed homes transacted at $10 million and above in 3Q2024, that is 2 less than the 10 offers logged in the previous quarter. “Nonetheless, there were some non-caveated agreements like a five-bedroom unit in Hilltops (a real estate luxurious condo on Cairnhill Circle) which was said to be cost around $13 million,” he proceeds.
In the GCB rental market, the top rental deal in 3Q2024 was for a GCB in Chatsworth Park that brought a monthly lease of $120,000.
Nevertheless, the numbers present a considerable improvement compared to the 37 high-end condo units cost $295.8 million that Huttons disclosed in 3Q2023. During the time, the marketplace was reeling from the April 2023 roll-out of cooling procedures, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, in addition to an anti-money laundering suppression in August 2023.
