Sluggish start to 2024 ends in decade-high home sales at year’s end
The initial assignment released after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Web Link. Over the weekend of Sept 21– 22, 53% of its units were snapped up at a common rate of $2,719 psf.
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, that noted a shift in sentiment, which some attribute to the 50-basis point interest rate reduced by the United States Federal Reserve in September.
With cumulative brand-new home sales in 2024 most likely to remain comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she claims, will depend on two factors: sustained sales force into the very first quarter of 2025 and a concurrent sharp rise in property rates surpassing GDP growth.
” Market belief was reluctant and cautious,” notes Mark Yip, CEO of Huttons Asia. “Perhaps as a result of uncertainties in the job market and constantly high rate of interest. Customers were most likely holding back, waiting for the extremely anticipated project launches later on in the year, including Chuan Park and Emerald of Katong.”
Speculation is today rampant about the choice of further property cooling procedures, provided the uncharacteristically high November sales. “While November’s sales numbers are outstanding, they supply an insufficient image for predicting lessening steps,” Chia notes. “The marketplace excitement was mainly steered by a year-end thrill to launch projects.”
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residential industry in the very first three quarters of 2024 created an irregular year-end situation. “Developers, who had repetitively held off release as a result of economic uncertainties and expectations for enhanced situations, lastly rolled out projects in November.”
Yip observes that the dispatch of the 276-unit property Kassia on Flora Drive around late July, which achieved a 52% take-up price, set the stage for solid sales energy following the Lunar Seventh Month.
The exception was the 533-unit Lentor Mansion, that achieved a 75% take-up price throughout its launch weekend in March. Most other venture launches in 1H2024 viewed reasonably lacklustre revenues contrasted to 2023.
“Even with close tracking by authorities, new procedures are likely to continue to be on hold unless clear indicators of consistent market overheating arise,” Chia adds.
Additional evidence of boosted sales energy surfaced on Oct 5, the moment greater than 50% of the 226 units at Meyer Blue were grabbed in private sales. Units were negotiated at an average rate of $3,260 psf, establishing a new benchmark for the prime District 15 enclave on the East Coast.
The property market in 2024 unfolded in two starkly different parts. The first part was sluggish, with boutique developments making centre stage and the lowest variety of units introduced sold as 1H1996, according to Huttons Data Analytics. Sales volume mirrored this pattern, with simply 1,889 units sold– the lowest ever since 1996.
Developer sales in November rose to 2,557 units– the strongest number ever since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Chia says this absolute shift from caution to action was motivated by the approaching year-end joyful lull and boosted market sentiment since the 3rd quarter of 2024. “The surge in event has actually changed November right into an uncommonly lively duration for real property start, defying the normal seasonal downturn and developing a vibrant market atmosphere.”
It began on Nov 6 with the launch 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 introduced together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
The solid November efficiency pressed total developer transactions for the very first 11 months of 2024 to 6,344 units. Year-end numbers are expected to surpass 6,500 units, going beyond the 6,421 units sold in 2023. “This shows the durability and resilience of the estate market,” says Huttons’ Yip. “It underscores the lasting appeal of property as an investment for wealth development and security.”
Norwood Grand was the 1st new exclusive non commercial project released in Woodlands in 12 years. Its good performance was also a very clear sign of expanding customer assurance and demand, according to Huttons’ Yip. It triggered a tidal upsurge of event in November with a record-breaking six new projects consisting of 3,551 units unleashed over 10 days.
The 348-unit Norwood Grand in Woodlands also accomplished several events. Over the weekend of October 19-20, it experienced a take-up rate of 84%, reaching the best-selling property in regards to rate of sales since October. The average cost of units sold was $2,067 psf, noting the first time a project in Woodlands exceeded the $2,000 psf limit.
