Luxury condo sales volume down 3.5% q-o-q in 3Q2024: Huttons Asia
The Good Class Bungalow (GCB) market likewise viewed a pick-up in activity in 3Q2024. An approximated 12 GCBs were marketed last quarter, up from eight GCBs in 2024. The bungalows marketed in 3Q2024 fetched a total of $541.2 million, 80.9% greater q-o-q.
In the rental market, the overall ordinary monthly rental fee of luxury non-landed homes increased 2.7% q-o-q to $14,932. The record adds that there was even more attention in four-bedroom high-end condominium units, with the ordinary rent for this classification expanding at a faster speed of 3.6% to reach $18,389 each month throughout the quarter.
“As a result of the potential change to the tax obligation status of some 74,000 non-domiciled residents in the UK, a few of these ultra-wealthy foreign people may move abroad to protect their properties. The countries under consideration involve Dubai, Italy, Singapore and Switzerland,” Yip reveals.
This brings the variety of GCB offers to 25 for the initial 9 months of the year, surpassing the 20 that were approximated to have transacted for the entire of 2023. The total value of GCBs offered to day this year appear at $958.7 million.
Yip notices that enquiries in the luxury apartment market have actually enhanced, with many coming from newly-minted Long-term Locals (PRs) and citizens who had requested their PR or citizenship last year following the increase in ABSD. “Most of them purchased a high end non-landed home upon confirmation of their PR or nationality,” he states.
In the GCB rental market, the leading rental offer in 3Q2024 was for a GCB in Chatsworth Park that fetched a month-to-month lease of $120,000.
Yip marks that there were 8 deluxe 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 arrangements like a five-bedroom unit in Hilltops (a freehold high-class flat on Cairnhill Circle) that was stated to be cost around $13 million,” he continues.
On a y-o-y basis, deluxe condominium sales volume is up 48.6% in 3Q2024, while 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, Chief Executive Officer of Huttons Asia.
The deluxe condominium market saw a downturn in profits in 3Q2024, according to data compiled by Huttons Asia. In its most recent Prestige Report that monitors the premium residential market, the consultancy claims an estimated 55 high-end non-landed homes– which it defines as apartment units placed in the Core Central Region that are sizing from 2,000 sq ft and priced at $5 million and above– were sold in 3Q2024 for $407.7 million. This stands for a 3.5% downturn in sales amount and a 15.5% decrease in sales value matched up to the 57 high-end apartment units cost $482.5 million in 2Q2024.
Nonetheless, the figures show a considerable development compared to the 37 luxury condo units sold for $295.8 million that Huttons disclosed in 3Q2023. At the time, the marketplace was staggering from the April 2023 roll-out of cooling down measures, 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, Yip thinks sale and rental deals for the upscale flat market could be higher in 4Q2024, steered by demand from ultra-wealthy foreign people in the UK seeking to transfer ahead of recommended tax change, involving the abolishment of a tax obligation regime that offers concessions for people with offshore wealth.
The largest GCB handle 3Q2024 was a 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 biggest luxury 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 property development on Gilstead Road by Kheng Leong Corporation also saw the 2nd and third-largest deals throughout the quarter. The units offered are both 4,209 sq ft houses that brought $14.65 million ($3,480 psf) and $14.44 million ($3,432 psf) respectively in September.
