Sluggish start to 2024 ends in decade-high home sales at year’s end
The solid November performance pressed overall property developer sales for the first 11 months of 2024 to 6,344 units. Year-end numbers are expected to go beyond 6,500 units, exceeding the 6,421 units sold in 2023. “This shows the stability and flexibility of the property market,” claims Huttons’ Yip. “It marks the lasting appeal of real property as an asset for wealth development and conservation.”
Further evidence of enhanced sales energy surfaced on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were bought in private sales. Units were settled at a normal rate of $3,260 psf, establishing a brand-new standard for the prime District 15 enclave on the East Coast.
With cumulative brand-new home sales in 2024 most likely to stay comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she states, will rely on two factors: sustained sales drive right into the very first quarter of 2025 and a simultaneous sharp increase in property costs exceeding GDP growth.
“Despite close tracking by authorities, brand-new actions are most likely to stay on hold unless clear signs of consistent market overheating arise,” Chia adds.
Chia states this decisive shift from caution to response was motivated by the coming close to year-end joyful lull and boosted market belief from the third quarter of 2024. “The growth in activity has improved November right into an unusually lively duration for real estate start, resisting the regular seasonal downturn and creating a vibrant industry atmosphere.”
It started 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 Road 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 3 plans launched together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
The 348-unit Norwood Grand in Woodlands additionally attained multiple events. Over the weekend of October 19-20, it found a take-up rate of 84%, reaching the very popular venture in terms of rate of sales as of October. The standard rate of units sold was $2,067 psf, marking the very first time a property in Woodlands exceeded the $2,000 psf threshold.
Yip observes that the launch of the 276-unit freehold Kassia on Flora Drive in late July, that attained a 52% take-up fee, established the scene for strong business momentum following the Lunar Seventh Month.
Developer profits in November skyrocketed to 2,557 units– the biggest amount since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Norwood Grand was the very first brand-new nonpublic non commercial job released in Woodlands in 12 years. Its good performance was in addition an obvious signal of increasing purchaser trust and need, according to Huttons’ Yip. It caused a tidal surge of activity in November with a record-breaking six brand-new projects making up 3,551 units released over 10 days.
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 developed an irregular year-end circumstance. “Developers, that had actually continuously held off launches because of financial uncertainties and optimisms for improved situations, finally rolled out projects in November.”
The real estate market in 2024 unfolded in two starkly different parts. The first half was slow, with store developments making centre stage and the smallest number of units introduced up for sale as 1H1996, according to Huttons Data Analytics. Sales volume mirrored this fad, with simply 1,889 units sold– the most affordable ever since 1996.
” Market sentiment was tentative and cautious,” notes Mark Yip, CEO of Huttons Asia. “Perhaps because of unpredictabilities in the occupation market and persistently high interest rates. Purchasers were likely holding back, waiting for the extremely anticipated plan launches later on in the year, like Chuan Park and Emerald of Katong.”
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 grabbed at a common cost of $2,719 psf.
In 3Q2024, brand-new home sales jumped 60% q-o-q, according to Huttons, which noted a shift in view, which some credit to the 50-basis factor interest rate cut by the United States Federal Reserve in September.
Speculation is today rampant about the possibility of further property cooling measures, offered the uncharacteristically high November sales. “While November’s sales figures are excellent, they give an insufficient picture for anticipating cooling measures,” Chia notes. “The market excitement was mainly driven by a year-end rush to launch projects.”
The exception was the 533-unit Lentor Mansion, which accomplished a 75% take-up rate during its release weekend in March. Many other work launches in 1H2024 viewed reasonably lacklustre profits contrasted to 2023.
