Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The high-end condominium industry saw a decrease in profits in 3Q2024, according to data compiled by Huttons Asia. In its newest Prestige Report that monitors the high-end residential market, the consultancy says a calculated 55 deluxe non-landed homes– which it specifies as condo units located in the Core Central Region that are sized from 2,000 sq ft and valued 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% decrease in sales value compared to the 57 luxury condo units sold for $482.5 million in 2Q2024.
The greatest deluxe 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 freehold development on Gilstead Road by Kheng Leong Co also saw the 2nd and third-largest deals during the quarter. The units marketed 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.
“As a result of the potential change to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, a few of these ultra-wealthy foreign locals may emigrate to guard their possessions. The states present consist of Dubai, Italy, Singapore and Switzerland,” Yip explains.
Nonetheless, the numbers reveal a significant development compared to the 37 luxury condo units cost $295.8 million that Huttons reported 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 immigrants to 60%, in addition to an anti-money laundering crackdown in August 2023.
This brings the number of GCB offers to 25 for the first nine months of the year, exceeding the 20 that were estimated to have actually negotiated for the whole of 2023. The complete worth of GCBs sold to date this year appear at $958.7 million.
In the leasing market, the total ordinary regular monthly rent of upscale non-landed homes increased 2.7% q-o-q to $14,932. The report includes that there was more interest in four-bedroom high-end apartment units, with the average rent for this classification growing at a much faster rate of 3.6% to hit $18,389 monthly throughout the quarter.
Looking forward, Yip believes sale and rental deals for the upscale flat market could be greater in 4Q2024, steered by need from ultra-wealthy foreign residents in the UK pursuing to move ahead of suggested tax obligation reforms, involving the abolishment of a tax obligation regime that provides concessions for people with offshore capital.
Yip notes that there were eight deluxe non-landed homes negotiated at $10 million and above in 3Q2024, that is two less than the 10 deals logged in the recent quarter. “However, there were some non-caveated offers like a five-bedroom unit in Hills (a property luxury condominium on Cairnhill Circle) that was claimed to be sold at around $13 million,” he continues.
The most significant GCB sell 3Q2024 was a property in Tanglin Hill that was apparently sold for $93.9 million, or $6,198 psf on its land area of 15,150 sq ft.
The Good Class Bungalow (GCB) market additionally observed a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The bungalows sold in 3Q2024 fetched an overall of $541.2 million, 80.9% greater q-o-q.
On a y-o-y basis, high-end apartment sales number is up 48.6% in 3Q2024, whilst sales worth is up 37.8%. “Activities in the deluxe non-landed homes market are back to the pre-cooling steps days,” says Mark Yip, CEO of Huttons Asia.
Yip observes that queries in the luxury condo market have actually boosted, with many coming from newly-minted Long-term Residents (PRs) and people that had actually requested their PR or citizenship last year following the increase in ABSD. “Most of them purchased a luxury non-landed home upon confirmation of their PR or nationality,” he states.
In the GCB leasing 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.
