Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the rentals market, the general ordinary regular monthly lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The record adds that there was even more attention in four-bedroom high-end apartment units, with the typical rental fee for this category growing at a quicker rate of 3.6% to reach $18,389 per month throughout the quarter.
The luxury apartment industry saw a downturn in profits in 3Q2024, according to data compiled by Huttons Asia. In its most current Prestige Report that monitors the premium non commercial market, the consultancy states a projected 55 luxury non-landed homes– which it specifies as condo units located in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and above– were marketed in 3Q2024 for $407.7 million. This represents a 3.5% decrease in sales quantity and a 15.5% decline in sales worth compared to the 57 luxury apartment units cost $482.5 million in 2Q2024.
In the GCB leasing market, the top service deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month lease of $120,000.
The biggest GCB handle 3Q2024 was a property in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
Nonetheless, the figures reveal a significant improvement compared to the 37 high-class condominium units sold for $295.8 million that Huttons disclosed in 3Q2023. During the time, the marketplace was staggering from the April 2023 roll-out of cooling steps, including a hike in additional buyer’s stamp duty (ABSD) for foreigners to 60%, in addition to an anti-money laundering crackdown in August 2023.
“Because of the possible modification to the tax standing of some 74,000 non-domiciled residents in the UK, several of these ultra-wealthy international residents may emigrate to protect their assets. The states present include Dubai, Italy, Singapore and Switzerland,” Yip explains.
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 entire of 2023. The overall worth of GCBs marketed to date this year clocks in at $958.7 million.
Looking ahead of time, Yip believes sale and rental deals for the luxury apartment market could be greater in 4Q2024, generated by need from ultra-wealthy foreign individuals in the UK finding to move ahead of recommended tax obligation change, including the abolishment of a tax regime that gives concessions for people with offshore assets.
The Good Class Bungalow (GCB) market also viewed a pick-up in action in 3Q2024. An estimated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The cottages offered in 3Q2024 fetched an overall of $541.2 million, 80.9% greater q-o-q.
The largest luxury apartment sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The freehold project on Gilstead Road by Kheng Leong Corporation additionally saw the second and third-largest deals throughout the quarter. The units offered 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.
Yip observes that enquiries in the high-end apartment market have raised, with many coming from newly-minted Long-term Citizens (PRs) and citizens who had requested their PR or citizenship last year following the hike in ABSD. “Much of them bought a luxury non-landed home upon confirmation of their PR or citizenship,” he claims.
On a y-o-y basis, high-end apartment sales quantity is up 48.6% in 3Q2024, while sales market value is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling measures days,” says Mark Yip, CEO of Huttons Asia.
Yip indicates that there were eight luxury non-landed homes transacted at $10 million and above in 3Q2024, that is two less than the 10 deals visited the previous quarter. “However, there were some non-caveated arrangements like a five-bedroom unit in Hills (a property luxury condominium on Cairnhill Circle) which was stated to be sold at around $13 million,” he proceeds.
