Sluggish start to 2024 ends in decade-high home sales at year’s end
It started 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 surged over the weekend break of Nov 15-16 with three projects released together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
The property industry in 2024 unfolded in two starkly different halves. The first part was sluggish, with shop developments getting centre stage and the least number of units released for sale ever since 1H1996, according to Huttons Data Analytics. Sales amount mirrored this fad, with just 1,889 units sold– the most affordable ever since 1996.
Developer sales in November skyrocketed to 2,557 units– the biggest figure since March 2013, when 3,489 units were released and 2,793 were marketed, according to Huttons Data Analytics.
The exemption was the 533-unit Lentor Mansion, which attained a 75% take-up price throughout its launch weekend in March. Most other venture launches in 1H2024 observed reasonably lacklustre revenues compared to 2023.
With cumulative brand-new home sales in 2024 likely to continue to be comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any treatment, she claims, will depend on 2 factors: sustained sales momentum right into the first quarter of 2025 and a concurrent sharp surge in property rates surpassing GDP growth.
” Market sentiment was reluctant and mindful,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “Maybe due to uncertainties in the occupation market and constantly high rate of interest. Buyers were most likely restraining, awaiting the highly anticipated plan launches later in the year, like Chuan Park and Emerald of Katong.”
Speculation is today rampant about the possibility of further real estate cooling actions, given the uncharacteristically high November sales. “While November’s sales numbers are remarkable, they supply an incomplete picture for predicting lessening actions,” Chia notes. “The marketplace excitement was mainly generated by a year-end rush to launch projects.”
Chia claims this absolute switch from attention to response was prompted by the approaching year-end cheery lull and enhanced market belief from the 3rd quarter of 2024. “The surge in activity has improved November into an unusually vivid duration for real property start, defying the common seasonal stagnation and producing a vibrant market environment.”
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private non commercial market in the very first three quarters of 2024 created an irregular year-end circumstance. “Developers, who had actually consistently delayed launches due to financial uncertainties and expectations for better situations, finally rolled out projects in November.”
Norwood Grand was the 1st brand-new private non commercial project launched in Woodlands in 12 years. Its good performance was additionally a very clear signal of expanding customer assurance and need, according to Huttons’ Yip. It set off a tidal wave of activity in November with a record-breaking six brand-new projects consisting of 3,551 units released over 10 days.
The very first assignment 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 gotten at a common cost of $2,719 psf.
The 348-unit Norwood Grand in Woodlands also attained numerous breakthroughs. Over the weekend of October 19-20, it experienced a take-up rate of 84%, making it the best-selling property in regards to rate of sales as of October. The standard price of units sold was $2,067 psf, marking the first time a property in Woodlands surpassed the $2,000 psf threshold.
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, that regarded a shift in view, which some credit to the 50-basis factor interest rate reduced by the US Federal Reserve in September.
The strong November performance pressed overall developer transactions for the early 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to exceed 6,500 units, exceeding the 6,421 units offered in 2023. “This mirrors the durability and flexibility of the property market,” says Huttons’ Yip. “It underscores the long-lasting appeal of property as an investment for wealth production and preservation.”
“Despite close tracking by authorities, new steps are most likely to continue to be on hold unless clear signs of relentless market overheating arise,” Chia incorporates.
Further evidence of enhanced sales momentum surfaced on Oct 5, when greater than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were settled at a normal price of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
Yip sees that the launch of the 276-unit estate Kassia on Flora Drive around late July, that achieved a 52% take-up price, set the stage for strong sales energy following the Lunar Seventh Month.
