Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The high-end apartment industry saw a decline in profits in 3Q2024, according to data collected 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 defines as apartment units placed in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and over– were marketed in 3Q2024 for $407.7 million. This stands for a 3.5% decrease in sales amount and a 15.5% decrease in sales worth compared to the 57 deluxe condominium units cost $482.5 million in 2Q2024.
The greatest deluxe condominium handle 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 Co likewise saw the 2nd and third-largest deals during the quarter. The units sold 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.
This brings the variety of GCB arrangements to 25 for the very first 9 months of the year, surpassing the 20 that were approximated to have actually negotiated for the whole of 2023. The total worth of GCBs marketed to date this year clocks in at $958.7 million.
In the GCB rental market, the leading leasing deal in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month rent of $120,000.
Nevertheless, the figures present a significant development compared to the 37 luxury condominium 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 a hike in additional buyer’s stamp duty (ABSD) for foreigners to 60%, in addition to an anti-money laundering suppression in August 2023.
The biggest GCB handle 3Q2024 was a real estate in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
In the rentals market, the total typical month-to-month lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The statement adds that there was even more interest in four-bedroom deluxe apartment units, with the typical rental fee for this category growing at a quicker speed of 3.6% to reach $18,389 each month during the quarter.
On a y-o-y basis, luxury condominium sales volume is raise 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling procedures days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
Yip notes that there were eight deluxe non-landed homes settled at $10 million and over in 3Q2024, which is 2 less than the 10 deals logged in the previous quarter. “Nonetheless, there were some non-caveated deals like a five-bedroom unit in Hilltops (a property luxury flat on Cairnhill Circle) which was stated to be sold at around $13 million,” he proceeds.
The Good Class Bungalow (GCB) market likewise saw a pick-up in action in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from 8 GCBs in 2024. The bungalows offered in 3Q2024 fetched a total of $541.2 million, 80.9% greater q-o-q.
“Due to the possible adjustment to the tax standing of some 74,000 non-domiciled tenants in the UK, a few of these ultra-wealthy foreign people might move abroad to safeguard their properties. The nations under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
Looking forward, Yip believes sale and rental deals for the luxury flat market could be greater in 4Q2024, generated by need from ultra-wealthy foreign individuals in the UK pursuing to relocate ahead of recommended tax obligation change, including the abolishment of a tax obligation program that offers concessions for people with offshore wealth.
Yip notices that enquiries in the luxury condominium market have actually increased, with many originating from newly-minted Long-term Homeowners (PRs) and citizens who had actually made an application for their PR or citizenship last year following the hike in ABSD. “A number of them bought a luxurious non-landed home upon approval of their PR or nationality,” he says.
