Luxury Condo Market Activity Nearly Back Pre Cooling Measures Level Huttons Asia
Huttons Asia research reports that demand for luxury condos has increased, leading to a rise in activity in the market. The consultancy reveals that 57 high-end non-landed homes, defined as condo units in the Core Central Region, were sold in 2Q2024, showing a Q-o-Q growth of 7.5%. These homes were sold for a total value of $482.5 million, a significant increase from 1Q2024’s $382.4 million. Huttons notes that this growth can be attributed to ultra-high-net-worth individuals (UHNWIs) gradually returning to the market.
CEO Mark Yip shares that activity in the luxury non-landed homes market is almost back to pre-cooling measures days. The most expensive transaction in 2Q2024 was the sale of a penthouse at Skywaters Residences for $47.34 million. Skywaters Residences, part of a mixed-use development in Tanjong Pagar, is set to be completed by 2028 and was the top-selling luxury non-landed project in the quarter.
The rental market for high-end condos also saw an increase in transactions, rising 12.5% Q-o-Q. However, rental rates remained relatively flat, with tenants being cautious due to the economic climate. Despite the uptick in transactions, Yip advises to maintain a cautious outlook as the government’s increased checks on UHNWIs’ source of wealth may lead to headwinds in the market. This may cause some UHNWIs to look for other wealth hubs like Hong Kong or Dubai, leading to a decline in luxury condo deals in 2H2024.
In the Good Class Bungalow (GCB) market, eight units were sold for $299.1 million, which is a significant increase from the five GCBs sold for $118.4 million in 1Q2024. Yip credits this to several high-profile deals in the quarter, possibly due to a narrowing in price expectations between sellers and buyers. The biggest deal in the GCB market was the sale of a property in the Bin Tong Park area for $84 million. The second-largest deal was a property in Jervois Hill that was sold for $58 million to a family member of one of the largest conglomerates in Indonesia.
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In the rental market, most GCBs were leased out for monthly rates under $30,000. The top rental deal was a property in Queen Astrid Park that was leased out for $75,000 per month.