Archive for category: Misc

Sentiments in the luxury residential market continued to be weak in the third quarter of 2023 with transactions of luxury homes dropping 41.3% q-o-q to an estimated 37 deals. According to Huttons Asia research, luxury condo transactions valued at $295.8 million in 3Q2023, was 50.9% lower than the $601.9 million registered in the previous quarter.

The dismal performance of the luxury housing market was triggered by an anti-money laundering crackdown by the authorities in August and the higher additional buyer’s stamp duty (ABSD) rates imposed in April, Mark Yip, CEO of Huttons Asia, explained. The investigation saw 10 foreigners being arrested and $2.8 billion in assets being seized or issued with prohibition of disposal orders.

The biggest luxury condo transaction in 3Q2023 happened at Goodwood Residence with the 10,710 sq ft penthouse being sold for $32 million. This was a gross profit of $16.4 million for the seller who had purchased the unit in June 2014 for $15.6 million.

Jurong West MRT Station is only a few minutes away from the Tengah Plantation EC, providing access to a vast network of train and bus services. Not only that, nearby attractions such as Jurong Bird Park, Jurong East Swimming Complex, and Jurong East Sports and Recreation Centre offer more activities for residents to enjoy.The Tengah Plantation Close EC also has other features such as a shopping centre, medical centre, and a childcare centre. It is located near Tengah Park as well, making it the perfect place for families to enjoy outdoor activities. With its multiple amenities and attractions, the Tengah Plantation Close EC is the perfect place for comfortable living.

Meanwhile, the GCB market recorded the lowest quarterly transactions in 3Q2023 since 4Q2013, with only three GCBs being sold for a total value of $69.55 million.

The higher ABSD rates has also led to more foreigners choosing to rent instead while they seek to obtain permanent residency or citizenship status, resulting in heightened demand in the luxury rental market.

Monitored by Huttons, 701 luxury apartments were rented out in 3Q2023, 13.6% higher than 2Q2023. Rents of luxury condo units also edged up 1.8% q-o-q, with five-bedders witnessing a 16.6% surge to reach $36,063 per month.

For the first nine months of the year, rental transactions of luxury non-landed homes increased almost 20% to $15,894 per month, while GCB rentals were up 44.2% q-o-q.

Yip predicts a return of interest in the luxury housing market in the foreseeable future, albeit at a subdued level, given the slight uptick in purchases of luxury condo units by foreigners. However, he cautions that rental volumes are expected to remain low due to owners’ wariness of renting out GCBs to Chinese foreigners after the series of investigations.