Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The biggest GCB sell 3Q2024 was a real property in Tanglin Hill that was supposedly sold for $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
The most significant luxury condo deal in 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 Corporation additionally 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.
“Because of the potential adjustment to the tax obligation standing of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy international locals might move abroad to secure their properties. The nations under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip reveals.
Yip marks that there were 8 deluxe non-landed homes negotiated at $10 million and over in 3Q2024, which is 2 less than the 10 deals logged in the previous quarter. “Nevertheless, there were some non-caveated offers like a five-bedroom unit in Hilltops (a property high-class flat on Cairnhill Circle) which was said to be sold at around $13 million,” he continues.
Yip sees that queries in the deluxe condominium market have actually raised, with many originating from newly-minted Long-term Homeowners (PRs) and people who had actually made an application for their PR or citizenship in 2023 following the hike in ABSD. “Most of them acquired a high end non-landed home upon approved of their PR or nationality,” he states.
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 bungalows marketed in 3Q2024 brought a total amount of $541.2 million, 80.9% greater q-o-q.
In the GCB rental market, the top leasing offer in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month lease of $120,000.
On a y-o-y basis, deluxe apartment sales volume is up 48.6% in 3Q2024, whilst sales value is up 37.8%. “Activities in the luxury non-landed homes market are back to the pre-cooling actions days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
Looking ahead of time, Yip thinks sale and rental activities for the luxury condo market could be greater in 4Q2024, steered by need from ultra-wealthy international residents in the UK finding to relocate ahead of suggested tax obligation reforms, featuring the abolishment of a tax obligation program that provides concessions for residents with offshore wealth.
Nevertheless, the figures present a considerable development contrasted to the 37 high-class condo units cost $295.8 million that Huttons disclosed in 3Q2023. At the time, the market was reeling from the April 2023 roll-out of cooling measures, including a hike 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 variety of GCB offers to 25 for the first nine months of the year, surpassing the 20 that were estimated to have actually negotiated for the entire of 2023. The complete value of GCBs offered to date this year appear at $958.7 million.
The deluxe condo market saw a decline in profits in 3Q2024, according to data compiled by Huttons Asia. In its latest Prestige Report that monitors the premium non commercial market, the consultancy claims a calculated 55 deluxe non-landed homes– which it defines as condo units placed in the Core Central Region that are sizing from 2,000 sq ft and valued at $5 million and above– were sold in 3Q2024 for $407.7 million. This represents a 3.5% decline in sales quantity and a 15.5% decline in sales worth matched up to the 57 deluxe condominium units sold for $482.5 million in 2Q2024.
In the rentals market, the general typical month-to-month lease of expensive non-landed homes grew 2.7% q-o-q to $14,932. The record includes that there was even more interest in four-bedroom high-end condominium units, with the average lease for this group growing at a quicker speed of 3.6% to reach $18,389 each month during the quarter.
