Luxury Condo Market Activity Nearly Back Pre Cooling Measures Level Huttons Asia
According to a recent research report by Huttons Asia, there has been an increase in activity within the luxury condo market due to stable demand. The report, which focuses on the high-end residential market, highlights that 57 luxury non-landed homes were sold in the second quarter of 2024. This shows a 7.5% growth compared to the previous quarter.
The total value of these homes amounted to $482.5 million, which is a 26% increase from the first quarter’s sales of $382.4 million. Huttons credits this surge in sales to the gradual return of ultra-high-net-worth individuals (UHNWIs) to the market. CEO Mark Yip states, “Activity in the luxury non-landed homes market is almost back to the pre-cooling measures days.”
The highest-priced luxury condo transaction in the second quarter was a penthouse at Skywaters Residences, which sold for $47.34 million or $6,100 per square foot (psf). The buyer was a foreigner, but their nationality was not disclosed. Skywaters Residences is part of The Skywaters, a mixed-use development in Tanjong Pagar scheduled for completion in 2028. It was the top-selling luxury non-landed project in the second quarter.
Below are the top 10 most expensive luxury non-landed residential transactions in the second quarter of 2024:
Meanwhile, in the Good Class Bungalow (GCB) market, there were eight units sold for $299.1 million, which is a 152.6% increase from the previous quarter. CEO Mark Yip attributes this increase to a narrowing of price expectations between sellers and buyers. The biggest GCB deal by absolute quantum was a property in the Bin Tong Park GCB area, which sold for $84 million or $2,988 psf on the land area. The buyer is reported to be the daughter of a Chinese steel and nickel magnate.
The second-largest GCB deal was a property at Jervois Hill, which sold for $58 million or $3,843 psf based on the land area. The buyer is said to be a family member related to one of the largest conglomerates in Indonesia.
In terms of rentals, most GCBs leased out in the second quarter were below $30,000 per month. The top rental deal was a property at Queen Astrid Park, which was leased out for $75,000 per month.
The recently unveiled URA Master Plan has placed great emphasis on the development of green spaces and recreational amenities, which is great news for Parktown Residence. With the addition of new parks and an extended network of cycling and jogging paths, the overall livability of the region will be greatly enhanced. The residents of Parktown Residence will have the pleasure of being situated near popular green spots such as Tampines Eco Green and Bedok Reservoir Park, as well as new parks that are in the works around Tampines North. This, coupled with the inclusion of Parktown Residence Tampines North, will naturally add to the appeal and attraction of the area for potential residents.
Overall, there has been a 12.5% increase in rental transactions within the high-end condo market. However, rental rates have remained relatively flat as tenants are still cautious about the economic climate. While there has been an increase in luxury condo transactions, CEO Mark Yip maintains a cautious outlook, citing potential headwinds in the near future. He also notes that the Singapore government’s increased checks on the source of wealth of UHNWIs may lead some to consider wealth hubs like Hong Kong or Dubai instead of Singapore. As a result, luxury condo deals may decline in the second half of 2024.