Hillock Green was December’s top-selling project in the OCR as well as across the island, shows the data from URA (Picture: Samuel Isaac Chua/EdgeProp Singapore)
The year-end holiday period and the absence of new launches prompted a plunge in new private home sales in December 2024, say real estate players. Developers sold 203 new homes excluding executive condos (ECs) last month, according to URA data published on Jan 15.
This marks a 92.1% plunge from a month ago when fresh launches had propelled November’s new home sales to 2,557 units.
Including ECs, new home sales fell by 87.1% from 2,894 units in November 2024 to 373 units last month, the URA data showed.
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The muted December sales are unsurprising, says Wong Siew Ying, head of research and content at PropNex Realty. “The slump in developers’ sales was expected as there were no fresh project launches in December, after an unprecedented deluge of launches in November.”
A total of 20 new homes were released for sale last month, representing a 99.3% m-o-m decline and a 44.4% y-o-y drop. “This is the lowest number of units launched for sale since URA started tracking data in 2007,” says Lee Sze Teck, Hutton’s senior director of data analytics.
In contrast, developers had launched 2,871 new homes in November, with several sizeable projects. These include the 916-unit Chuan Park, the 846-unit Emerald of Katong, the 552-unit Nava Grove, the 367-unit The Collective at One Sophia, and the 366-unit Union Square Residences.
According to Marcus Chu, ERA Singapore’s CEO, the sales figure for December is the second-lowest monthly sales for 2024, after the 153 new homes sold in February 2024.
That said, on a y-o-y basis, last month’s sales are the highest December sales since 2021, says Huttons’ Lee. This follows a spillover of buying sentiment in November 2024 despite the lack of project launches, he adds.
For 2024 as a whole, around 6,560 new units, excluding ECs, were sold, marking a slight improvement from 2023, according to URA data. Nevertheless, it is the fourth lowest full-year sales volume on record, after 4,264 units sold in 2008; 5,785 units in 2004; and 6,421 units in 2023, the data showed.
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Christine Sun, chief researcher and strategist at OrangeTee Group, says the low sales reflect the challenging market environment in recent years. “The muted sales can be attributed to the multiple rounds of cooling measures, repercussions of high interest rates and heightened competition from the completion of many new homes since 2021,” she observes.
According to Huttons’ Lee, developers launched an estimated 6,647 new homes for sale for the whole of 2024, 12% lower than the 7,551 units launched in 2023.
New homes within the Outside Central Region (OCR) led December sales, with 111 units transacted last month, according to the data from URA. This was a plunge from 893 units sold in November 2024, down 88% m-o-m.
Excluding ECs, Hillock Green — the 474-unit development by Soilbuild Group, Forsea Holdings and United Engineers — was December’s top-selling project in the OCR as well as across the island, shows the data from URA. The 99-year leasehold development sold 19 units at a median price of $2,278 psf.
According to URA, OCR sales were also supported by The Myst and Chuan Park, which moved 17 units at a median price of $2,080 psf and 11 units at a median price of $2,657, respectively.
Meanwhile, the Rest of Central Region (RCR) and the Core Central Region (CCR) recorded sales of 73 units and 19 units respectively, falling from the 1,569 and 98 units sold in November.
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In terms of buyer profile, Huttons’ Lee highlights that the highest transacted value last month was for the sale of a $14.578 million unit in 32 Gilstead to a foreigner. Foreigners accounted for six new private home purchases last month, down from 22 units a month ago. Three of the properties bought in December were in the CCR, with the remaining three bought in the RCR.
ERA’s Chu says the lack of new EC launches resulted in EC sales falling 49.1% m-o-m to 170 transactions in December. However, sales were supported by the 504-unit Novo Place, which had its second balloting for second-time buyers last month. The EC sold 158 units at a median price of $1,647 psf, bringing its overall take-up rate to 445 units or 88% since its launch in November 2024.
A rebound in sales is expected in January, supported by new launches, say real estate players. These include the 777-unit The Orie in the RCR and the 113-unit Bagnall Haus in OCR. Both projects will commence sales bookings on Jan 18.
ERA’s Chu adds that One Bernam, which first launched in May 2021, will also contribute to January sales. Over the weekend of Jan 11 and 12, the mixed-use development in the CCR offered 87 units for sale at promotional prices.
Given the pick-up in activity, Huttons’ Lee believes developers’ sales in January could reach between 700 and 900 units.
Other projects are anticipated to be rolled out in the coming months, including the 477-unit Lentor Central Residences, the 501-unit Elta, and the 1,193-unit Parktown Residence. “In view of these diverse launches, we expect to see a stronger start to developers’ sales in 2025 compared with 2024,” says PropNex’s Wong.
Excluding ECs, PropNex estimates over 11,000 new homes could be launched by developers in 2025. Correspondingly, the firm projects developers’ sales could rise to between 8,000 and 9,000 units this year.
Wong adds that “quantum play” will remain a key strategy for developers in 2025. “Price quantum is ultimately what matters most to homebuyers and investors when they assess their ability to get financing, determine stamp duties payable, as well as to evaluate potential rental yield,” she explains.