Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The deluxe condominium industry saw a decrease in sales in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the high-end residential market, the consultancy claims an estimated 55 high-end non-landed homes– which it specifies as apartment units found in the Core Central Region that are sizing from 2,000 sq ft and priced at $5 million and above– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% decrease in sales amount and a 15.5% decrease in sales value compared to the 57 deluxe apartment units cost $482.5 million in 2Q2024.
Yip notes that there were 8 deluxe non-landed homes transacted at $10 million and over in 3Q2024, that is two less than the 10 deals visited the previous quarter. “Nonetheless, there were some non-caveated offers like a five-bedroom unit in Hills (a property high-class flat on Cairnhill Circle) which was said to be cost around $13 million,” he proceeds.
On a y-o-y basis, deluxe apartment sales number is up 48.6% in 3Q2024, whilst sales value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling actions days,” claims Mark Yip, CEO of Huttons Asia.
The most significant GCB deal in 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.
Yip notices that queries in the deluxe condominium market have enhanced, with several coming from newly-minted Permanent Locals (PRs) and residents who had obtained their PR or citizenship last year following the increase in ABSD. “Much of them got a luxury non-landed home upon approved of their PR or nationality,” he states.
“Due to the possible modification to the tax obligation standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy international people may move abroad to safeguard their possessions. The nations present include Dubai, Italy, Singapore and Switzerland,” Yip says.
Looking ahead, Yip believes sale and rental transactions for the upscale flat market could be greater in 4Q2024, driven by need from ultra-wealthy international residents in the UK pursuing to move ahead of suggested tax change, involving the abolishment of a tax program that offers concessions for people with offshore capital.
This brings the variety of GCB transactions to 25 for the first nine months of the year, exceeding the 20 that were estimated to have actually worked out for the entire of 2023. The overall value of GCBs sold to day this year appear at $958.7 million.
In the GCB rental market, the top leasing deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a regular monthly rent of $120,000.
The greatest 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 property project on Gilstead Road by Kheng Leong Co likewise saw the second and third-largest deals during 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) respectively in September.
The Good Class Bungalow (GCB) market likewise viewed a pick-up in activity in 3Q2024. An approximated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The cottages marketed in 3Q2024 fetched a total of $541.2 million, 80.9% higher q-o-q.
Nonetheless, the numbers present a considerable development compared to the 37 high-class condominium units cost $295.8 million that Huttons disclosed in 3Q2023. At the time, the market 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%, in addition to an anti-money laundering suppression in August 2023.
In the rental market, the overall average month-to-month lease of luxury non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was more attention in four-bedroom luxury condo units, with the ordinary lease for this category growing at a faster rate of 3.6% to hit $18,389 per month throughout the quarter.
