Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The high-end condo industry saw a downturn in revenues in 3Q2024, according to data collected by Huttons Asia. In its latest Prestige Report that monitors the high-end residential market, the consultancy claims a projected 55 deluxe non-landed homes– which it defines as condominium units found in the Core Central Region that are sized from 2,000 sq ft and cost at $5 million and over– were marketed in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in transactions volume and a 15.5% decrease in sales value compared to the 57 deluxe condo units cost $482.5 million in 2Q2024.
Yip indicates that there were 8 luxury non-landed homes negotiated at $10 million and above in 3Q2024, that is two less than the 10 offers visited the last quarter. “However, there were some non-caveated deals like a five-bedroom unit in Hilltops (a property luxurious condo unit on Cairnhill Circle) that 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 procedures days,” claims Mark Yip, CEO of Huttons Asia.
The biggest high-end condominium 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 project on Gilstead Street by Kheng Leong Co additionally saw the 2nd and third-largest deals during the quarter. The units marketed are both 4,209 sq ft houses that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) specifically in September.
The greatest GCB sell 3Q2024 was a real estate in Tanglin Hill that was supposedly cost $93.9 million, or $6,198 psf on its acreage of 15,150 sq ft.
In the GCB rental market, the leading service offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a monthly rent of $120,000.
“Due to the possible modification to the tax obligation standing of some 74,000 non-domiciled residents in the UK, a few of these ultra-wealthy foreign people might emigrate to protect their assets. The countries under consideration consist of Dubai, Italy, Singapore and Switzerland,” Yip discusses.
This brings the number of GCB arrangements to 25 for the very first 9 months of the year, going beyond the 20 that were estimated to have negotiated for the entire of 2023. The total value of GCBs sold to day this year appear at $958.7 million.
Nevertheless, the figures present a substantial enhancement compared to the 37 high-end apartment units sold for $295.8 million that Huttons reported in 3Q2023. At 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 suppression in August 2023.
Looking ahead of time, Yip believes sale and rental deals for the high-end condominium market could be higher in 4Q2024, generated by need from ultra-wealthy international residents in the UK pursuing to move ahead of recommended tax change, featuring the abolishment of a tax obligation regime that provides concessions for people with offshore wealth.
Yip notices that enquiries in the deluxe condo market have boosted, with lots of originating from newly-minted Permanent Locals (PRs) and citizens who had applied for their PR or citizenship in 2023 following the increase in ABSD. “Most of them purchased a luxurious non-landed home upon confirmation of their PR or nationality,” he says.
In the leasing market, the overall ordinary regular monthly lease of upscale non-landed homes expanded 2.7% q-o-q to $14,932. The statement includes that there was more attention in four-bedroom deluxe condominium units, with the typical rent for this classification growing at a faster speed of 3.6% to hit $18,389 per month throughout the quarter.
The Good Class Bungalow (GCB) market additionally saw a pick-up in activity in 3Q2024. An estimated 12 GCBs were sold last quarter, up from 8 GCBs in 2024. The bungalows marketed in 3Q2024 fetched a total amount of $541.2 million, 80.9% higher q-o-q.
