Sluggish start to 2024 ends in decade-high home sales at year’s end
The property industry in 2024 unfolded in 2 starkly contrasting halves. The very first part was sluggish, with store developments making centre stage and the least number of units released up for sale as 1H1996, according to Huttons Data Analytics. Sales quantity mirrored this fad, with simply 1,889 units sold– the most affordable since 1996.
Speculation is now rampant about the choice of further property cooling steps, offered the uncharacteristically high November sales. “While November’s sales numbers are excellent, they supply an incomplete picture for predicting cooling procedures,” Chia notes. “The marketplace excitement was mainly steered by a year-end rush to release projects.”
It began on Nov 6 with the open 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 introduced in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
“Despite close checking by authorities, new measures are likely to continue to be on hold unless clear signs of consistent market overheating emerge,” Chia adds.
” Market sentiment was tentative and careful,” mentions Mark Yip, CEO of Huttons Asia. “It could be due to uncertainties in the work market and constantly high rates of interest. Purchasers were likely restraining, waiting for the highly anticipated plan launches later on in the year, such as Chuan Park and Emerald of Katong.”
The solid November productivity pushed total developer deals for the first 11 months of 2024 to 6,344 units. Year-end numbers are expected to go beyond 6,500 units, going beyond the 6,421 units offered in 2023. “This shows the strength and flexibility of the real estate market,” says Huttons’ Yip. “It marks the long-lasting demand of real property as an asset for wealth production and conservation.”
The 348-unit Norwood Grand in Woodlands also achieved several turning points. Over the weekend of October 19-20, it saw a take-up figure of 84%, making it the very popular property in regards to amount of sales since October. The common rate of units sold was $2,067 psf, noting the first time a project in Woodlands went beyond the $2,000 psf limit.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the exclusive residential sector in the first three quarters of 2024 produced an atypical year-end circumstance. “Property developers, that had continuously held off kick off because of economic uncertainties and hopes for enhanced situations, lastly rolled out ventures in November.”
Chia says this absolute change from attention to response was prompted by the approaching year-end festive lull and improved market belief since the third quarter of 2024. “The upsurge in activity has actually improved November into an uncommonly vibrant time frame for property release, opposing the typical seasonal slowdown and developing a vibrant market atmosphere.”
Developer profits in November rose to 2,557 units– the strongest number ever since March 2013, when 3,489 units were released and 2,793 were offered, according to Huttons Data Analytics.
More evidence of increased sales momentum emerged on Oct 5, the moment greater than 50% of the 226 units at Meyer Blue were snapped up in private sales. Units were transacted at a normal cost of $3,260 psf, setting a new benchmark for the prime District 15 enclave on the East Coast.
With cumulative brand-new home sales in 2024 most likely to continue to be on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she says, will rely on two factors: sustained sales drive right into the initial quarter of 2025 and a concurrent sharp increase in property costs surpassing GDP growth.
The exemption was the 533-unit Lentor Mansion, which accomplished a 75% take-up price throughout its release weekend in March. A lot of various other venture launches in 1H2024 observed fairly lacklustre sales contrasted to 2023.
Norwood Grand was the first new private residential plan launched in Woodlands in 12 years. Its good performance was also a clear sign of growing purchaser confidence and demand, according to Huttons’ Yip. It caused a tidal wave of activity in November with a record-breaking six brand-new assignments making up 3,551 units released over 10 days.
The very first campaign launched 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 gotten at a common rate of $2,719 psf.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, which marked a change in view, which some attribute to the 50-basis factor interest rate reduced by the US Federal Reserve in September.
Yip sees that the dispatch of the 276-unit property Kassia on Flora Drive around late July, that accomplished a 52% take-up price, established the setting for strong business energy following the Lunar Seventh Month.
