Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
On a y-o-y basis, high-end condo sales quantity is up 48.6% in 3Q2024, while sales worth is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling steps days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
This brings the number of GCB offers to 25 for the very first 9 months of the year, surpassing the 20 that were approximated to have actually transacted for the whole of 2023. The complete value of GCBs sold to day this year appear at $958.7 million.
The most significant GCB sell 3Q2024 was a real 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.
Nevertheless, the numbers reveal a significant development contrasted to the 37 high-end condominium units cost $295.8 million that Huttons disclosed in 3Q2023. During the time, the market was staggering from the April 2023 roll-out of cooling down steps, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, together with an anti-money laundering suppression in August 2023.
Yip observes that queries in the deluxe condo market have boosted, with numerous originating from newly-minted Long-term Residents (PRs) and citizens who had actually requested their PR or citizenship in 2023 following the hike in ABSD. “Most of them acquired a luxury non-landed home upon confirmation of their PR or citizenship,” he claims.
Yip notes that there were 8 high-end non-landed homes settled at $10 million and over in 3Q2024, which is 2 less than the 10 offers visited the last quarter. “Nonetheless, there were some non-caveated arrangements like a five-bedroom unit in Hills (a property high-class condo unit on Cairnhill Circle) which was said to be sold at around $13 million,” he proceeds.
“Because of the possible change to the tax standing of some 74,000 non-domiciled residents in the UK, a few of these ultra-wealthy foreign residents may emigrate to protect their possessions. The states present consist of Dubai, Italy, Singapore and Switzerland,” Yip reveals.
Looking forward, Yip thinks sale and rental transactions for the luxury condo market could be greater in 4Q2024, driven by demand from ultra-wealthy foreign people in the UK pursuing to transfer ahead of suggested tax obligation change, involving the abolishment of a tax program that provides concessions for people with offshore assets.
The Orie City Developments Limited, Frasers Property and Sekisui House
The deluxe condominium market saw a downturn in profits in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the high-end non commercial market, the consultancy claims an estimated 55 deluxe 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% decline in transactions volume and a 15.5% decrease in sales worth compared to the 57 deluxe condominium units cost $482.5 million in 2Q2024.
The greatest luxury condo sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The estate project on Gilstead Road by Kheng Leong Corporation also saw the second and third-largest deals during the quarter. The units offered 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 Good Class Bungalow (GCB) market likewise saw a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from 8 GCBs in 2024. The cottages marketed in 3Q2024 fetched a total amount of $541.2 million, 80.9% higher q-o-q.
In the rental market, the overall typical regular monthly lease of upscale non-landed homes grew 2.7% q-o-q to $14,932. The report adds that there was more interest in four-bedroom high-end condominium units, with the ordinary lease for this classification expanding at a much faster rate of 3.6% to hit $18,389 monthly during the quarter.
In the GCB rental market, the top service offer in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month rental fee of $120,000.
