Assessing the potential rental yield is a crucial aspect to consider when contemplating a condo investment. The rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly depending on factors such as location, property condition, and market demand. The areas with high rental demand, such as those situated near business districts or educational institutions, generally offer more favorable rental yields. For a better understanding of a specific condo’s rental potential, it is advisable to conduct thorough market research and consult with real estate agents. Additionally, Singapore Projects can provide valuable insights into the rental potential of a condo.
2024 has been a year filled with challenges for the global luxury goods market. Due to macroeconomic uncertainty and increasing prices, consumers have been cutting back on their spending on luxury retail items. According to a report by Bain & Company, global sales of personal luxury goods are expected to decline by 2% this year, with key market China estimated to have experienced a decline of 20-22%. Major luxury brands such as Richemont Luxury, LVMH, and Moncler Group have reported slight declines in earnings, while Kering saw more significant decreases.
However, there have been some outliers in the industry that have seen growth despite these challenges. Hermes and Prada Group, which also owns Miu Miu, reported double-digit earnings growth. Despite the overall decline, Singapore remains an important market for luxury brands, with Euromonitor reporting an 11% growth in sales of luxury goods in 2023 to reach $9.1 billion.
In recent years, luxury brands such as Dior, Chanel, and Louis Vuitton have embraced robust digital strategies, including e-commerce and digital marketing, to engage with customers. This is crucial in a world where consumer behaviors, expectations, and preferences are rapidly evolving. Additionally, these brands have recognized the importance of creating offline shopping experiences to build closer connections with their customers.
Flagship stores are getting bigger and bolder as luxury brands aim to provide unique and elevated experiences for their top-tier clients. Louis Vuitton recently opened a new 690 sq m “apartment concept” space at Ngee Ann City dedicated to its “VICs” or very important clients. Burberry is another brand that has invested in creating immersive store experiences, with extensive renovations at their Marina Bay Sands and Paragon stores, as well as a new Orchard Road street-facing store at Wisma Atria.
Despite the challenges faced in 2024, the luxury goods market is expected to see growth in 2025 and beyond. This can be attributed to factors such as the steady growth of high-net-worth individuals (HNWIs) worldwide, the interest in luxury goods from Millennials and Gen Z, the resurgence of tourists from China, and the growth of travel retail, especially in Japan.
Looking to the future, some trends that we can expect to see in the luxury goods industry include personalization and customization to build stronger connections and brand loyalty with customers, as well as leveraging AI and digital experiences to better understand customer wants and complement offline experiences.
Some luxury brands are already leading the way in embracing innovative AI technology. Dior’s AI platform, Astra, gathers data from various channels to stay in tune with customer preferences. Balenciaga made headlines with their Winter 2024 collection fashion show, where they transformed the runway and set into an immersive digital canvas using AI-driven digital distortions. Brunello Cucinelli even created a separate website powered entirely by generative AI.
Despite the challenges faced in 2024, the luxury goods market continues to grow and evolve. With Millennials and Gen Z making up a significant portion of the consumer base, luxury brands will continue to embrace advanced technology and platforms while creating unique and immersive physical store experiences.