Sluggish start to 2024 ends in decade-high home sales at year’s end
The real estate market in 2024 unravelled in 2 starkly contrasting halves. The very first part was slow, with shop developments getting centre stage and the lowest variety of units introduced sold since 1H1996, according to Huttons Data Analytics. Sales amount mirrored this trend, with just 1,889 units sold– the lowest ever since 1996.
The exception was the 533-unit Lentor Mansion, which attained a 75% take-up rate during its release weekend in March. A lot of various other work launches in 1H2024 saw relatively lacklustre sales contrasted to 2023.
“Despite close tracking by authorities, brand-new procedures are most likely to continue to be on hold unless clear indications of relentless market overheating arise,” Chia incorporates.
Speculation is now rampant about the possibility of further real estate cooling actions, given the uncharacteristically high November sales. “While November’s sales figures are outstanding, they supply an insufficient picture for predicting lessening actions,” Chia notes. “The marketplace excitement was largely driven by a year-end thrill to launch projects.”
In 3Q2024, brand-new home sales jumped 60% q-o-q, according to Huttons, that noted a switch in view, which some attribute to the 50-basis factor rate of interest reduced by the US Federal Reserve in September.
The strong November performance pressed overall property developer transactions for the very first 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 reflects the durability and resilience of the estate market,” states Huttons’ Yip. “It emphasizes the enduring appeal of real property as an investment for wealth creation and conservation.”
Developer sales in November skyrocketed to 2,557 units– the strongest number ever since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
” Market view was tentative and mindful,” notes Mark Yip, CEO of Huttons Asia. “Maybe as a result of unpredictabilities in the work market and persistently high rates of interest. Purchasers were most likely holding back, waiting for the highly anticipated project launches later on in the year, like Chuan Park and Emerald of Katong.”
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residential market in the very first three quarters of 2024 created an atypical year-end situation. “Property developers, who had actually repeatedly postponed kick off because of financial uncertainties and hopes for better situations, finally turned out ventures in November.”
Yip sees that the dispatch of the 276-unit freehold Kassia on Flora Drive in late July, that attained a 52% take-up fee, set the stage for solid business momentum following the Lunar Seventh Month.
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 surged over the weekend break of Nov 15-16 with three plans released jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condo (EC).
The 348-unit Norwood Grand in Woodlands even attained multiple turning points. Over the weekend of October 19-20, it experienced a take-up level of 84%, causing it to the very popular property in terms of amount of sales since October. The common price of units sold was $2,067 psf, noting the first time a project in Woodlands exceeded the $2,000 psf threshold.
Norwood Grand was the very first brand-new exclusive non commercial job introduced in Woodlands in 12 years. Its strong performance was also an obvious sign of expanding buyer assurance and need, according to Huttons’ Yip. It set off a tidal surge of activity in November with a record-breaking 6 new ventures comprising 3,551 units released over 10 days.
Further proof of boosted sales momentum emerged on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were grabbed in private sales. Units were transacted at a normal rate of $3,260 psf, establishing a brand-new standard for the prime District 15 enclave on the East Coast.
With cumulative brand-new home sales in 2024 most likely to continue to be comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will depend on two factors: continual sales drive right into the very first quarter of 2025 and a simultaneous sharp surge in property costs surpassing GDP growth.
The first assignment introduced 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 cost of $2,719 psf.
Chia says this decisive switch from attention to motion was prompted by the approaching year-end cheery lull and improved market sentiment from the 3rd quarter of 2024. “The upsurge in event has improved November into an uncommonly lively time frame for property release, defying the typical seasonal stagnation and producing a vibrant industry environment.”
