Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
In the rental market, the total typical month-to-month rental fee of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The statement adds that there was more interest in four-bedroom deluxe condo units, with the typical rent for this classification growing at a much faster rate of 3.6% to hit $18,389 monthly during the quarter.
“As a result of the possible modification to the tax obligation status of some 74,000 non-domiciled dwellers in the UK, a few of these ultra-wealthy foreign residents may move abroad to protect their possessions. The nations under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
Yip notices that enquiries in the deluxe condo market have increased, with numerous coming from newly-minted Permanent Residents (PRs) and citizens who had requested their PR or citizenship last year following the hike in ABSD. “A lot of them purchased a high end non-landed home upon approval of their PR or citizenship,” he says.
This brings the number of GCB transactions to 25 for the initial nine months of the year, surpassing the 20 that were estimated to have actually worked out for the whole of 2023. The overall value of GCBs marketed to date this year appear at $958.7 million.
The luxury condo industry saw a downturn in revenues in 3Q2024, according to information gathered by Huttons Asia. In its most recent Prestige Report that monitors the premium residential market, the consultancy says a calculated 55 high-end non-landed homes– which it specifies as apartment units placed in the Core Central Region that are sizing from 2,000 sq ft and cost at $5 million and above– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% decline in transactions quantity and a 15.5% decrease in sales worth compared to the 57 luxury condo units cost $482.5 million in 2Q2024.
The Good Class Bungalow (GCB) market also observed a pick-up in action in 3Q2024. An approximated 12 GCBs were offered last quarter, up from eight GCBs in 2024. The bungalows offered in 3Q2024 fetched an overall of $541.2 million, 80.9% greater q-o-q.
Looking ahead of time, Yip thinks sale and rental deals for the luxury condominium market could be higher in 4Q2024, steered by demand from ultra-wealthy foreign people in the UK finding to relocate ahead of recommended tax change, featuring the abolishment of a tax obligation program that gives concessions for residents with offshore assets.
Nevertheless, the numbers present a substantial enhancement contrasted to the 37 high-end apartment units cost $295.8 million that Huttons announced in 3Q2023. At the time, the market was reeling from the April 2023 roll-out of cooling down procedures, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, together with an anti-money laundering crackdown in August 2023.
The largest high-end 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 estate project on Gilstead Road by Kheng Leong Co also saw the 2nd 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.
The biggest GCB deal in 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.
In the GCB leasing market, the leading service deal in 3Q2024 was for a GCB in Chatsworth Park that brought a month-to-month lease of $120,000.
Yip marks that there were eight luxury non-landed homes settled at $10 million and over in 3Q2024, that is two less than the 10 deals visited the last quarter. “However, there were some non-caveated arrangements like a five-bedroom unit in Hills (a property luxury condo unit on Cairnhill Circle) which was said to be cost around $13 million,” he proceeds.
On a y-o-y basis, luxury condominium sales number is raise 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 actions days,” says Mark Yip, Chief Executive Officer of Huttons Asia.
