Sluggish start to 2024 ends in decade-high home sales at year’s end
Developer sales in November rose to 2,557 units– the highest figure since March 2013, when 3,489 units were launched and 2,793 were offered, according to Huttons Data Analytics.
With cumulative brand-new home sales in 2024 most likely to stay comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she states, will rely on two factors: sustained sales drive right into the initial quarter of 2025 and a concurrent sharp rise in property rates outpacing GDP growth.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive non commercial sector in the very first 3 quarters of 2024 created an irregular year-end situation. “Property developers, that had repeatedly held off release due to financial uncertainties and expectations for enhanced situations, finally rolled out projects in November.”
” Market view was tentative and mindful,” mentions Mark Yip, CEO of Huttons Asia. “Maybe due to unpredictabilities in the occupation market and constantly high interest rates. Customers were most likely holding off, awaiting the highly anticipated plan launches later on in the year, including Chuan Park and Emerald of Katong.”
The 348-unit Norwood Grand in Woodlands additionally achieved numerous breakthroughs. Over the weekend of October 19-20, it saw a take-up rate of 84%, causing it to the very popular property in regards to percentage of sales as of October. The average rate of units marketed was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf limit.
The strong November efficiency drove complete developer sales for the first 11 months of 2024 to 6,344 units. Year-end figures are expected to surpass 6,500 units, surpassing the 6,421 units offered in 2023. “This mirrors the durability and flexibility of the real property market,” states Huttons’ Yip. “It emphasizes the enduring appearance of real property as an investment for wealth development and conservation.”
Additional documentation of increased sales momentum emerged on Oct 5, when more than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were settled at an average cost of $3,260 psf, establishing a new measure for the prime District 15 enclave on the East Coast.
Speculation is now rampant about the possibility of further real estate cooling actions, given the uncharacteristically high November sales. “While November’s sales figures are remarkable, they give an incomplete image for predicting cooling measures,” Chia notes. “The marketplace exuberance was mainly driven by a year-end rush to introduce projects.”
It began on Nov 6 with the open of the 367-unit The Collective at One Sophia, followed by the 366-unit Union Square Residences at Havelock Roadway on Nov 9. Momentum built up with the launch of the 916-unit Chuan Park on Nov 10, and it rose over the weekend break of Nov 15-16 with three projects launched together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
“Despite close checking by authorities, new steps are likely to remain on hold unless clear indicators of relentless market overheating arise,” Chia includes.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, which noted a switch in view, which some attribute to the 50-basis factor interest rate cut by the United States Federal Reserve in September.
Yip sees that the launch of the 276-unit property Kassia on Flora Drive around late July, that attained a 52% take-up fee, established the stage for solid business energy following the Lunar Seventh Month.
Chia claims this decisive switch from vigilance to motion was triggered by the coming close to year-end festive lull and improved market sentiment since the third quarter of 2024. “The upsurge in activity has actually improved November into an unusually vivid period for real estate launches, opposing the regular seasonal slowdown and developing a vibrant market atmosphere.”
The Hill @ One North condominium
The property market in 2024 unfolded in two starkly different halves. The initial part was slow, with boutique developments getting centre stage and the lowest number of units introduced up for sale ever since 1H1996, according to Huttons Data Analytics. Sales quantity represented this pattern, with just 1,889 units sold– the lowest ever since 1996.
The exemption was the 533-unit Lentor Mansion, which achieved a 75% take-up price throughout its launch weekend in March. Most other venture launches in 1H2024 viewed fairly lacklustre sales compared to 2023.
The initial project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend of Sept 21– 22, 53% of its units were snapped up at a standard price of $2,719 psf.
Norwood Grand was the first new exclusive residence project introduced in Woodlands in 12 years. Its good performance was also an obvious signal of growing customer assurance and need, according to Huttons’ Yip. It caused a tidal upsurge of action in November with a record-breaking six brand-new ventures comprising 3,551 units released over 10 days.
