Sluggish start to 2024 ends in decade-high home sales at year’s end
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residence market in the very first three quarters of 2024 created an atypical year-end scenario. “Developers, who had actually consistently postponed kick off because of financial unpredictabilities and optimisms for improved situations, lastly rolled out ventures in November.”
More proof of enhanced sales momentum surfaced on Oct 5, when greater than 50% of the 226 units at Meyer Blue were bought in private sales. Units were negotiated at a normal price of $3,260 psf, establishing a new benchmark for the prime District 15 enclave on the East Coast.
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 of Nov 15-16 with three projects introduced jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
” Market view was tentative and cautious,” notes Mark Yip, CEO of Huttons Asia. “It could be due to uncertainties in the job market and persistently high rate of interest. Customers were likely holding back, waiting for the highly anticipated plan launches later in the year, like Chuan Park and Emerald of Katong.”
Chia states this absolute shift from vigilance to motion was prompted by the coming close to year-end festive lull and enhanced market sentiment since the 3rd quarter of 2024. “The surge in event has actually transformed November into an unusually lively duration for property start, defying the common seasonal slowdown and developing a vibrant market environment.”
Speculation is today rampant about the possibility of further property cooling actions, provided the uncharacteristically high November sales. “While November’s sales figures are remarkable, they offer an incomplete image for predicting cooling steps,” Chia notes. “The market excitement was mainly steered by a year-end thrill to release projects.”
With cumulative brand-new home sales in 2024 most likely to remain comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she claims, will depend on 2 factors: sustained sales momentum into the very first quarter of 2025 and a concurrent sharp surge in property costs surpassing GDP growth.
The exception was the 533-unit Lentor Mansion, which attained a 75% take-up rate throughout its launch weekend in March. Most various other venture launches in 1H2024 observed fairly lacklustre profits contrasted to 2023.
“Even with close tracking by authorities, new actions are likely to remain on hold unless clear signs of persistent market overheating emerge,” Chia incorporates.
The 348-unit Norwood Grand in Woodlands even achieved several events. Over the weekend of October 19-20, it saw a take-up level of 84%, reaching the best-selling venture in regards to amount of sales since October. The standard rate of units offered was $2,067 psf, noting the very first time a property in Woodlands went beyond the $2,000 psf limit.
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, that noted a change in view, which some credit to the 50-basis point rate of interest reduced by the United States Federal Reserve in September.
The first assignment released 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 1st brand-new exclusive non commercial plan launched in Woodlands in 12 years. Its strong performance was also an obvious signal of growing customer confidence and demand, according to Huttons’ Yip. It activated a tidal surge of action in November with a record-breaking 6 new ventures consisting of 3,551 units unleashed over 10 days.
The property market in 2024 unravelled in two starkly different parts. The very first half was slow, with store developments making centre stage and the least variety of units introduced up for sale as 1H1996, according to Huttons Data Analytics. Sales amount mirrored this pattern, with just 1,889 units sold– the lowest from 1996.
Developer sales in November skyrocketed to 2,557 units– the highest number since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Yip sees that the dispatch of the 276-unit property Kassia on Flora Drive around late July, which accomplished a 52% take-up fee, set the scene for solid business momentum following the Lunar Seventh Month.
The strong November performance drove overall property developer sales for the early 11 months of 2024 to 6,344 units. Year-end numbers are expected to exceed 6,500 units, surpassing the 6,421 units sold in 2023. “This shows the strength and flexibility of the real property market,” says Huttons’ Yip. “It marks the lasting appearance of real property as an asset for wealth production and preservation.”
