Sluggish start to 2024 ends in decade-high home sales at year’s end
The solid November performance pushed complete developer transactions for the first 11 months of 2024 to 6,344 units. Year-end figures are expected to surpass 6,500 units, going beyond the 6,421 units offered in 2023. “This reflects the durability and strength of the real estate market,” states Huttons’ Yip. “It marks the lasting appeal of real property as an asset for wealth production and preservation.”
It began on Nov 6 with the kick off 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 of Nov 15-16 with three projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Yip notices that the launch of the 276-unit freehold Kassia on Flora Drive around late July, that achieved a 52% take-up rate, established the scene for solid sales momentum following the Lunar Seventh Month.
Chia says this decisive switch from vigilance to motion was triggered by the coming close to year-end festive lull and enhanced market sentiment from the third quarter of 2024. “The upsurge in activity has actually changed November into an unusually vibrant duration for real property start, opposing the common seasonal slowdown and producing a vibrant industry environment.”
The initial project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend break of Sept 21– 22, 53% of its units were bought at a standard price of $2,719 psf.
The exception was the 533-unit Lentor Mansion, that attained a 75% take-up rate during its release weekend in March. Many other project launches in 1H2024 observed fairly lacklustre sales compared to 2023.
With cumulative brand-new home sales in 2024 most likely to remain on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she claims, will rely on two factors: sustained sales force into the initial quarter of 2025 and a simultaneous sharp surge in property rates surpassing GDP growth.
” Market view was tentative and careful,” notes Mark Yip, Chief Executive Officer of Huttons Asia. “Perhaps due to uncertainties in the occupation market and constantly high rates of interest. Buyers were likely holding back, waiting for the extremely anticipated project launches later in the year, like Chuan Park and Emerald of Katong.”
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, that regarded a change in belief, which some attribute to the 50-basis factor interest rate cut by the United States Federal Reserve in September.
The real estate industry in 2024 unravelled in two starkly contrasting parts. The very first half was slow, with shop developments getting centre stage and the smallest number of units introduced for sale since 1H1996, according to Huttons Data Analytics. Sales quantity represented this fad, with simply 1,889 units sold– the lowest ever since 1996.
Developer profits in November soared to 2,557 units– the highest amount since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Speculation is today rampant about the choice of further property cooling steps, offered the uncharacteristically high November sales. “While November’s sales numbers are remarkable, they give an insufficient picture for predicting cooling measures,” Chia notes. “The market excitement was mainly steered by a year-end rush to release projects.”
The 348-unit Norwood Grand in Woodlands even accomplished numerous events. Over the weekend of October 19-20, it found a take-up figure of 84%, causing it to the best-selling project in terms of rate of sales as of October. The standard rate of units marketed was $2,067 psf, noting the first time a property in Woodlands went beyond the $2,000 psf limit.
Norwood Grand was the first brand-new exclusive residential plan launched in Woodlands in 12 years. Its good performance was additionally a clear sign of increasing customer confidence and demand, according to Huttons’ Yip. It activated a tidal wave of event in November with a record-breaking six new ventures comprising 3,551 units unleashed over 10 days.
“Despite close tracking by authorities, brand-new measures are most likely to continue to be on hold unless clear indications of consistent market overheating arise,” Chia adds.
Further evidence of increased sales energy arised on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were bought in private sales. Units were transacted at an average cost of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive non commercial sector in the very first three quarters of 2024 created an irregular year-end circumstance. “Developers, that had continuously postponed kick off as a result of financial uncertainties and hopes for enhanced situations, finally presented projects in November.”
