Sluggish start to 2024 ends in decade-high home sales at year’s end
The property industry in 2024 unfolded in 2 starkly contrasting parts. The very first half was slow, with boutique developments getting centre stage and the least variety of units launched sold since 1H1996, according to Huttons Data Analytics. Sales volume mirrored this trend, with simply 1,889 units sold– the most affordable from 1996.
The first campaign introduced after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Web Link. Over the weekend break of Sept 21– 22, 53% of its units were purchased at an average cost of $2,719 psf.
” Market sentiment was tentative and cautious,” mentions Mark Yip, CEO of Huttons Asia. “Perhaps as a result of unpredictabilities in the occupation market and constantly high rate of interest. Purchasers were likely restraining, waiting for the highly anticipated plan launches later in the year, such as Chuan Park and Emerald of Katong.”
The strong November productivity drove complete property developer deals for the very first 11 months of 2024 to 6,344 units. Year-end numbers are expected to exceed 6,500 units, exceeding the 6,421 units offered in 2023. “This mirrors the durability and resilience of the estate market,” says Huttons’ Yip. “It underscores the lasting demand of property as an investment for wealth creation and preservation.”
Developer sales in November soared to 2,557 units– the strongest figure since March 2013, when 3,489 units were released and 2,793 were offered, according to Huttons Data Analytics.
Chia claims this crucial change from caution to response was triggered by the coming close to year-end festive lull and boosted market sentiment since the 3rd quarter of 2024. “The growth in activity has improved November into an uncommonly vibrant duration for real property release, defying the typical seasonal stagnation and creating a vibrant industry atmosphere.”
The 348-unit Norwood Grand in Woodlands also attained several breakthroughs. Over the weekend of October 19-20, it observed a take-up figure of 84%, making it the best-selling project in regards to amount of sales since October. The average cost of units sold was $2,067 psf, marking the very first time a project in Woodlands exceeded the $2,000 psf limit.
More documentation of increased sales energy emerged on Oct 5, the moment greater than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were negotiated at a common price of $3,260 psf, setting a brand-new benchmark for the prime District 15 enclave on the East Coast.
Norwood Grand was the first brand-new private residence job launched in Woodlands in 12 years. Its solid performance was also a clear indicator of growing purchaser assurance and demand, according to Huttons’ Yip. It activated a tidal upsurge of event in November with a record-breaking six brand-new projects comprising 3,551 units unleashed over 10 days.
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 surged over the weekend of Nov 15-16 with 3 projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
“Despite close checking by authorities, brand-new procedures are likely to remain on hold unless clear signs of persistent market overheating emerge,” Chia incorporates.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private residence industry in the very first 3 quarters of 2024 developed an atypical year-end scenario. “Developers, that had consistently held off kick off because of financial uncertainties and optimisms for better conditions, ultimately rolled out ventures in November.”
Yip sees that the launch of the 276-unit property Kassia on Flora Drive in late July, which attained a 52% take-up fee, established the scene for strong sales momentum following the Lunar Seventh Month.
With cumulative brand-new home sales in 2024 likely to stay comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will rely on two factors: sustained sales drive right into the initial quarter of 2025 and a simultaneous sharp increase in property prices exceeding GDP growth.
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, which noted a change in belief, which some credit to the 50-basis factor rate of interest cut by the United States Federal Reserve in September.
The exception was the 533-unit Lentor Mansion, that attained a 75% take-up rate during its release weekend in March. Many other venture launches in 1H2024 viewed relatively lacklustre profits contrasted to 2023.
Speculation is now rampant about the option of further real estate cooling procedures, offered the uncharacteristically high November sales. “While November’s sales figures are outstanding, they supply an incomplete picture for predicting lessening procedures,” Chia notes. “The market excitement was greatly generated by a year-end rush to release projects.”
