Sluggish start to 2024 ends in decade-high home sales at year’s end
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, which marked a switch in belief, which some credit to the 50-basis factor interest rate cut by the US Federal Reserve in September.
” Market sentiment was reluctant and cautious,” mentions Mark Yip, CEO of Huttons Asia. “Maybe because of uncertainties in the work market and persistently high rate of interest. Buyers were likely holding off, waiting on the extremely anticipated project launches later in the year, like Chuan Park and Emerald of Katong.”
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 surged over the weekend of Nov 15-16 with 3 plans introduced together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condo (EC).
With cumulative new home sales in 2024 likely to continue to be on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she claims, will depend on two factors: sustained sales drive into the very first quarter of 2025 and a concurrent sharp surge in property prices exceeding GDP growth.
The first project released after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend break of Sept 21– 22, 53% of its units were bought at a standard rate of $2,719 psf.
Norwood Grand was the 1st brand-new private residence job launched in Woodlands in 12 years. Its strong performance was also a clear indicator of increasing purchaser assurance and need, according to Huttons’ Yip. It set off a tidal surge of activity in November with a record-breaking six brand-new assignments comprising 3,551 units released over 10 days.
The 348-unit Norwood Grand in Woodlands additionally achieved numerous turning points. Over the weekend of October 19-20, it experienced a take-up figure of 84%, reaching the best-selling venture in regards to rate of sales as of October. The standard cost of units offered was $2,067 psf, marking the very first time a project in Woodlands exceeded the $2,000 psf limit.
The exception was the 533-unit Lentor Mansion, that achieved a 75% take-up price throughout its launch weekend in March. Many other work launches in 1H2024 observed reasonably lacklustre sales compared to 2023.
Developer sales in November rose to 2,557 units– the biggest figure ever since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Additional evidence of raised sales momentum surfaced on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were settled at a normal price of $3,260 psf, establishing a new standard for the prime District 15 enclave on the East Coast.
The solid November productivity drove overall developer transactions for the first 11 months of 2024 to 6,344 units. Year-end figures are expected to surpass 6,500 units, exceeding the 6,421 units offered in 2023. “This mirrors the strength and flexibility of the property market,” says Huttons’ Yip. “It underscores the enduring appearance of real property as an investment for wealth development and preservation.”
The real estate industry in 2024 unravelled in two starkly contrasting halves. The initial part was slow-moving, with boutique developments taking centre stage and the smallest variety of units launched for sale since 1H1996, according to Huttons Data Analytics. Sales amount represented this fad, with simply 1,889 units sold– the most affordable since 1996.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive residence sector in the first 3 quarters of 2024 developed an irregular year-end situation. “Property developers, who had continuously postponed kick off because of economic unpredictabilities and expectations for enhanced situations, finally turned out projects in November.”
Yip notices that the dispatch of the 276-unit freehold Kassia on Flora Drive in late July, that attained a 52% take-up rate, established the setting for strong deals energy following the Lunar Seventh Month.
Speculation is today rampant about the choice of further property cooling actions, offered the uncharacteristically high November sales. “While November’s sales numbers are excellent, they give an insufficient picture for anticipating lessening measures,” Chia notes. “The marketplace exuberance was mainly generated by a year-end rush to launch projects.”
“Despite close tracking by authorities, new measures are likely to continue to be on hold unless clear signs of persistent market overheating arise,” Chia adds.
Chia says this decisive change from vigilance to motion was prompted by the approaching year-end joyful lull and improved market belief from the 3rd quarter of 2024. “The growth in event has changed November into an unusually lively duration for real estate launches, defying the typical seasonal downturn and creating a vibrant industry setting.”
