Luxury Condo Market Activity Nearly Back Pre Cooling Measures Level Huttons Asia
According to the latest Prestige Report by Huttons Asia, the luxury condo market has experienced an increase in activity due to steady demand. The consultancy’s research shows that 57 luxury non-landed homes, defined as condo units in the Core Central Region with a size of at least 2,000 sq ft and priced at $5 million and above, were sold in the second quarter of 2024. This marks a 7.5% increase from the previous quarter.
The total value of these transactions amounted to $482.5 million, a 26% rise from the previous quarter’s $382.4 million. Huttons attributes this increase in sales to the return of ultra-high-net-worth individuals (UHNWIs) to the market. CEO Mark Yip says, “Activity in the luxury non-landed homes market is almost at pre-cooling measures levels.”
The most expensive luxury condo sold during the second quarter was a penthouse unit in Skywaters Residences, a 190-unit development in the former AXA Tower in Tanjong Pagar. The 7,761 sq ft unit was sold for $47.34 million ($6,100 psf) to a foreign buyer. However, the nationality of the buyer was not disclosed.
In terms of rentals, the high-end condo market also saw an increase of 12.5% compared to the previous quarter. However, rental rates remained relatively stable. Yip notes that while there is an increase in demand, tenants are still cautious due to the current economic climate.
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Despite the positive signs in the luxury condo market, Yip remains cautious about the future due to potential headwinds. He mentions that the Singapore government’s increased scrutiny of the source of wealth of UHNWIs may push some of them to consider other wealth hubs like Hong Kong or Dubai. As a result, he believes that luxury condo transactions may decline in the second half of 2024.
In the Good Class Bungalow (GCB) market, eight units were sold for a total of $299.1 million in the second quarter of 2024. This is a significant increase from the five GCBs sold for $118.4 million in the previous quarter, representing a 152.6% increase in sales value.
Yip attributes this increase to several high-profile deals that took place during the quarter. He also mentions that there is a narrowing of price expectations between buyers and sellers, which may have contributed to the higher transaction value.
The largest GCB deal in the second quarter was the sale of a property in the Bin Tong Park area for $84 million ($2,988 psf). This property, sitting on a land area of 28,111 sq ft, was reportedly sold to the daughter of a Chinese steel and nickel magnate. The second-largest GCB deal was a property at Jervois Hill, which was sold for $58 million ($3,843 psf) to a family member of one of Indonesia’s largest conglomerates.
In terms of rentals, most GCBs were leased out for monthly rates below $30,000 in the second quarter of 2024. The highest rental deal during the quarter was for a property in Queen Astrid Park, which was leased for $75,000 per month.