Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The high-end apartment market saw a decrease in revenues in 3Q2024, according to information collected by Huttons Asia. In its latest Prestige Report that monitors the high-end residential market, the consultancy states a calculated 55 high-end non-landed homes– which it specifies as condo units placed in the Core Central Region that are sized from 2,000 sq ft and valued at $5 million and above– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in transactions volume and a 15.5% decrease in sales worth compared to the 57 deluxe condo units sold for $482.5 million in 2Q2024.
On a y-o-y basis, deluxe apartment sales number is up 48.6% in 3Q2024, while sales worth is up 37.8%. “Activities in the high-end non-landed homes market are back to the pre-cooling actions days,” states Mark Yip, Chief Executive Officer of Huttons Asia.
Yip notes that there were eight luxury non-landed homes negotiated at $10 million and over in 3Q2024, that is 2 less than the 10 offers logged in the recent quarter. “Nonetheless, there were some non-caveated agreements like a five-bedroom unit in Hills (a freehold high-class condominium on Cairnhill Circle) which was stated to be cost around $13 million,” he continues.
The largest high-end apartment sell 3Q2024 was the developer sale of a 4,198 sq ft unit at 32 Gilstead for $14.71 million ($3,505 psf). The property project on Gilstead Street by Kheng Leong Corporation additionally saw the second and third-largest deals throughout the quarter. The units sold are both 4,209 sq ft apartments that fetched $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) respectively in September.
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.
Looking forward, Yip thinks sale and rental activities for the high-end condominium market could be higher in 4Q2024, driven by demand from ultra-wealthy foreign locals in the UK pursuing to relocate ahead of suggested tax change, featuring the abolishment of a tax program that gives concessions for residents with offshore assets.
Nevertheless, the numbers present a substantial enhancement contrasted to the 37 high-class condo units cost $295.8 million that Huttons reported in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling steps, including an increase in additional buyer’s stamp duty (ABSD) for foreigners to 60%, along with an anti-money laundering suppression in August 2023.
“Due to the potential modification to the tax standing of some 74,000 non-domiciled dwellers in the UK, several of these ultra-wealthy foreign residents might emigrate to protect their possessions. The countries present include Dubai, Italy, Singapore and Switzerland,” Yip reveals.
Yip sees that enquiries in the high-end condominium market have raised, with many coming from newly-minted Permanent Locals (PRs) and people that had gotten their PR or citizenship in 2023 following the increase in ABSD. “Much of them purchased a high end non-landed home upon approved of their PR or citizenship,” he claims.
This brings the variety of GCB transactions to 25 for the initial nine months of the year, surpassing the 20 that were approximated to have actually negotiated for the whole of 2023. The overall worth of GCBs marketed to date this year appear at $958.7 million.
The Good Class Bungalow (GCB) market additionally observed a pick-up in action in 3Q2024. An approximated 12 GCBs were sold last quarter, up from 8 GCBs in 2024. The cottages offered in 3Q2024 fetched a total of $541.2 million, 80.9% higher q-o-q.
The greatest GCB handle 3Q2024 was a property in Tanglin Hill that was apparently cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
In the leasing market, the overall average month-to-month lease of expensive non-landed homes expanded 2.7% q-o-q to $14,932. The report includes that there was more interest in four-bedroom luxury condominium units, with the ordinary lease for this group expanding at a faster rate of 3.6% to hit $18,389 monthly during the quarter.
