Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The most significant GCB deal in 3Q2024 was a real property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
On a y-o-y basis, deluxe apartment 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 actions days,” claims Mark Yip, CEO of Huttons Asia.
This brings the number of GCB deals to 25 for the initial nine months of the year, going beyond the 20 that were estimated to have actually transacted for the entire of 2023. The overall worth of GCBs sold to date this year appear at $958.7 million.
Yip marks that there were 8 deluxe non-landed homes transacted at $10 million and above in 3Q2024, that is 2 less than the 10 deals logged in the previous quarter. “However, there were some non-caveated offers like a five-bedroom unit in Hills (a property luxurious condo on Cairnhill Circle) that was said to be sold at around $13 million,” he continues.
“As a result of the potential adjustment to the tax obligation standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy foreign locals might move abroad to secure their assets. The countries under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip reveals.
Looking ahead of time, Yip thinks sale and rental transactions for the high-end apartment market could be greater in 4Q2024, driven by need from ultra-wealthy foreign residents in the UK pursuing to move ahead of proposed tax obligation change, including the abolishment of a tax program that gives concessions for people with offshore assets.
The Good Class Bungalow (GCB) market likewise observed a pick-up in activity in 3Q2024. An estimated 12 GCBs were sold last quarter, up from eight GCBs in 2024. The bungalows offered in 3Q2024 brought an overall of $541.2 million, 80.9% higher q-o-q.
Yip observes that queries in the deluxe condominium market have actually increased, with lots of originating from newly-minted Long-term Residents (PRs) and residents that had actually gotten their PR or citizenship in 2023 following the increase in ABSD. “A number of them purchased a luxury non-landed home upon confirmation of their PR or citizenship,” he says.
Nonetheless, the figures reveal a considerable enhancement contrasted to the 37 high-end apartment units cost $295.8 million that Huttons reported in 3Q2023. During the time, the market was reeling from the April 2023 roll-out of cooling down actions, including a hike in additional buyer’s stamp duty (ABSD) for foreigners to 60%, together with an anti-money laundering suppression in August 2023.
The luxury condominium market saw a decrease in sales in 3Q2024, according to data gathered by Huttons Asia. In its latest Prestige Report that monitors the premium non commercial market, the consultancy says a projected 55 deluxe non-landed homes– which it specifies as apartment units located in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and over– were marketed in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in sales quantity and a 15.5% decrease in sales value matched up to the 57 high-end condo units sold for $482.5 million in 2Q2024.
In the GCB leasing market, the top service deal in 3Q2024 was for a GCB in Chatsworth Park that brought a regular monthly rent of $120,000.
In the rental market, the overall typical monthly rent of luxury non-landed homes increased 2.7% q-o-q to $14,932. The statement adds that there was more attention in four-bedroom high-end apartment units, with the average lease for this classification growing at a quicker speed of 3.6% to reach $18,389 per month during the quarter.
The biggest deluxe condo handle 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The estate development on Gilstead Street by Kheng Leong Co additionally saw the second and third-largest deals during 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) respectively in September.
