57 luxury non-landed homes were sold for $482.5 million in 2Q2Q2024 (Picture: Samuel Isaac Chua/The Edge Singapore)
The luxury condo market saw an uptick in activity on the back of steady demand, according to research by Huttons Asia. In its latest Prestige Report that monitors the high-end residential market, the consultancy highlights that 57 luxury non-landed homes — which it defines as condo units located in the Core Central Region that are sized from 2,000 sq ft and priced at $5 million and above — were sold in 2Q2024, registering a q-o-q growth of 7.5%.
The homes were transacted at a total value of $482.5 million, some 26% higher than the $382.4 million logged in 1Q2024. Huttons attributes the higher sales to ultra-high-net-worth individuals (UHNWIs) gradually returning to the market. “Activity in the luxury non-landed homes market is almost back to the pre-cooling measures days,” says Huttons Asia's CEO Mark Yip.
The most expensive luxury condo transaction during the second quarter was the sale of a penthouse at the 190-unit Skywaters Residences. The 7,761 sq ft unit fetched $47.34 million ($6,100 psf), according to a caveat lodged on May 20. The buyer is listed as a foreigner, although the nationality is not specified.
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Skywaters Residences is part of The Skywaters, a mixed-use development occupying the former AXA Tower in Tanjong Pagar. Slated for completion by 2028, the condo was the top-selling luxury non-landed project in 2Q2024.
Rental transactions in the high-end condo market also increased in 2Q2024, rising 12.5% q-o-q. However, rental rates stayed relatively flat. “While demand has picked up, tenants were generally cautious in view of the economic climate,” Yip observes.
Despite the pick-up in luxury condo transactions in 2Q2024, the Yip maintains a cautious outlook, noting that the market may see headwinds soon. “Increased checks on the source of wealth of UHNWIs by the Singapore government is increasing friction in the market,” he says. The checks may compel some UHNWIs to opt for other wealth hubs like Hong Kong or Dubai. Consequently, Yip believes luxury condo deals may decline in 2H2024.
Meanwhile, in the Good Class Bungalow (GCB) market, eight units were sold for $299.1 million in 2Q2024. The total exceeds the five GCBs sold for $118.4 million in 1Q2024, representing a surge in sales value by 152.6% q-o-q.
Yip credits the larger transaction value to several high-profile deals last quarter. “This could be due to a narrowing in price expectations between sellers and buyers,” he continues.
The biggest GCB deal by absolute quantum in 2Q2024 was the sale of a property in the Bin Tong Park GCB area. The house, which occupies a land area of 28,111 sq ft, was reported in April to have sold for $84 million ($2,988 psf on the land area). The buyer is said to be the daughter of a Chinese steel and nickel magnate.
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The second-largest GCB deal was a property at Jervois Hill that changed hands for $58 million, or $3,843 psf based on the land area of 15,094 sq ft. The buyer is said to be a family member related to one of the largest conglomerates in Indonesia.
In the rental market, most GCBs leased out in 2Q024 were rented out at monthly rates below $30,000, states Huttons’ report. The top GCB rental deal in the quarter was a property at Queen Astrid Park that was leased out for $75,000 per month.