Sluggish start to 2024 ends in decade-high home sales at year’s end
The property market in 2024 unfolded in two starkly contrasting halves. The first part was slow-moving, with shop developments taking centre stage and the smallest number of units launched sold as 1H1996, according to Huttons Data Analytics. Sales volume mirrored this pattern, with simply 1,889 units sold– the lowest since 1996.
Speculation is today rampant about the option of further property cooling measures, provided the uncharacteristically high November sales. “While November’s sales numbers are outstanding, they offer an incomplete image for forecasting lessening actions,” Chia notes. “The marketplace liveliness was mostly generated by a year-end rush to launch projects.”
Yip notices that the dispatch of the 276-unit freehold Kassia on Flora Drive around late July, that attained a 52% take-up price, established the setting for strong deals momentum following the Lunar Seventh Month.
” Market view was reluctant and cautious,” mentions Mark Yip, CEO of Huttons Asia. “Maybe as a result of uncertainties in the work market and persistently high rate of interest. Purchasers were likely holding back, waiting on the highly anticipated project launches later on in the year, including Chuan Park and Emerald of Katong.”
The very first assignment launched 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 standard price of $2,719 psf.
Chia says this absolute shift from attention to motion was motivated by the approaching year-end joyful lull and improved market sentiment from the third quarter of 2024. “The surge in event has actually changed November right into an unusually dynamic time frame for property release, opposing the regular seasonal slowdown and creating a dynamic industry atmosphere.”
“Even with close checking by authorities, brand-new procedures are likely to continue to be on hold unless clear signs of consistent market overheating arise,” Chia includes.
The 348-unit Norwood Grand in Woodlands also accomplished multiple events. Over the weekend of October 19-20, it found a take-up level of 84%, making it the best-selling property in regards to rate of sales since October. The common cost of units sold was $2,067 psf, noting the first time a property in Woodlands exceeded the $2,000 psf limit.
Developer revenues in November soared to 2,557 units– the strongest figure ever since March 2013, when 3,489 units were introduced and 2,793 were sold, according to Huttons Data Analytics.
With cumulative new home sales in 2024 most likely to stay on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she claims, will rely on two factors: continual sales momentum right into the initial quarter of 2025 and a simultaneous sharp rise in property rates surpassing GDP growth.
The exception was the 533-unit Lentor Mansion, that accomplished a 75% take-up rate throughout its launch weekend in March. A lot of various other work launches in 1H2024 saw relatively lacklustre sales contrasted to 2023.
Norwood Grand was the first brand-new exclusive residential job introduced in Woodlands in 12 years. Its good performance was also a very clear sign of increasing buyer confidence and demand, according to Huttons’ Yip. It set off a tidal surge of activity in November with a record-breaking six brand-new ventures comprising 3,551 units unleashed over 10 days.
Further proof of increased sales momentum emerged on Oct 5, when more than 50% of the 226 units at Meyer Blue were grabbed in private sales. Units were negotiated at an average cost of $3,260 psf, establishing a new standard for the prime District 15 enclave on the East Coast.
It began 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 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 three projects launched together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condo (EC).
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive residential industry in the very first 3 quarters of 2024 developed an atypical year-end scenario. “Developers, that had actually continuously held off release due to financial unpredictabilities and expectations for better situations, lastly rolled out projects in November.”
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, that marked a change in sentiment, which some credit to the 50-basis factor rate of interest reduced by the United States Federal Reserve in September.
The solid November performance pressed total property developer sales for the very first 11 months of 2024 to 6,344 units. Year-end figures are anticipated to surpass 6,500 units, surpassing the 6,421 units marketed in 2023. “This mirrors the durability and resilience of the real estate market,” says Huttons’ Yip. “It emphasizes the lasting appearance of real property as an investment for wealth production and security.”
