Fresh launches supercharge November new private home sales to 2,557 units, up 246% m-o-m
/ EdgeProp Singapore |
Emerald of Katong was the best-selling project in November (Picture: Samuel Isaac Chua/The Edge Singapore)
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Developers sold 2,557 new private homes, excluding executive condos (ECs), in November, according to URA data published on Dec 16. The figure represents a 246.5% surge from the 738 new private homes sold in October and a 226.1% jump compared to units sold in November 2023.
“The surge marked the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold,” says Christine Sun, chief researcher and strategist at OrangeTee Group. Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is the first time new home sales have exceeded the 2,000-unit threshold in a single month since March 2013.
Lee Sze Teck, senior director of data analytics at Huttons Asia, says the higher developer sales in November are due to an unprecedented number of project launches during the month. Five private residential projects were launched in November: 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.
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Developers launched 2,871 new homes, excluding ECs, in November, a 438% increase over the previous month and 196% from a year earlier.
The 504-unit Novo Place EC also commenced sales in November. Including ECs, new home sales for November jumped by 277% m-o-m and 226% y-o-y to 2,891 units.
As of November, developers have sold 6,344 new homes, which is marginally higher than the 6,317 units sold in the first 11 months of 2023. This comes off the back of 6,627 units launched for sale by developers in the first 11 months of 2024. In comparison, developers launched 7,515 units across the same period last year.
Top-selling projects
Emerald of Katong was the best-selling project in November. The 846-unit development by Sim Lian Group on Jalan Tembusu in the Rest of Central Region (RCR) moved 840 units, or 99% during the month with a median price of $2,627 psf. This makes the 99-year leasehold development the bestselling project by units and percentage not just in November but also for the whole of 2024, according to Huttons’ Lee.
Emerald of Katong’s location in coveted District 15, along with its appealing design, drew buyers to the project, says OrangeTee’s Sun. “The improved affordability of mortgages likely further incentivised buyers to invest in this city-fringe project, as lower interest rates have made mortgages more accessible,” she continues.
Kingsford Group’s 916-unit Chuan Park sold 721 (79%) units at a median price of $2,586 psf, making it the second-best-selling project by number of units in November. The 99-year leasehold condo is located on Lorong Chuan, adjacent to Lorong Chuan MRT Station, in the Outside Central Region (OCR).
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Nava Grove, located off Ulu Pandan Road in District 21, was the third best-selling project in terms of units sold. The 99-year leasehold RCR development by MCL Land and Sinarmas Land sold 382 units (69%) in November, with a median price of $2,445 psf.
Sun believes the strong sales performance among the new launches was fuelled by pent-up demand and improved buyer sentiment following interest rate cuts in September. “Consequently, many buyers were eager to take advantage of attractive deals as several prominent projects were launched simultaneously,” she continues.
The RCR accounted for 1,569 new private homes sold in November or over 60%. This was followed by the OCR, which moved 890 (35%). In the Core Central Region (CCR), 98 new homes were sold in November, representing a one-year high. Sales in the CCR were bolstered by the launch of The Collective at One Sophia, which moved 62 units at a median price of $2,732 psf.
New launches to bolster momentum in 2025
Looking ahead, a more muted December is anticipated due to the school holidays and the festive season. Huttons’ Lee believes an absence of launches in December will result in new private home sales falling to around 200 to 250 units. This will bring full-year developer sales to about 6,500 units, which is slightly more than the 6,421 units sold in 2023.
In terms of prices, Lee predicts full-year price growth of about 5%, moderating from the 6.8% growth registered in 2023.
OrangeTee’s Sun believes that the recent surge in sales is a temporary occurrence and is not indicative of a property market that is overheating. “Sales during the first three quarters of 2024 amounted to only 3,049 units, the lowest 1Q to 3Q figures recorded since 2004, the year when data from URA first became available,” she points out.
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Wong Siew Ying, head of research and content at PropNex Realty, shares a similar view. “November’s robust sales have to be seen in context and they do not automatically imply that an unfettered resurgence is upon the private housing market,” she adds.
SRI’s Sandrasegeran expects new home sales to regain momentum in January 2025 with the launch of the 777-unit The Orie by City Developments on Lorong 1 Toa Payoh. “[The area] has not seen a new property launch since Gem Residences in 2016, and this extended gap is likely to generate pent-up demand and continuing buyer enthusiasm for this well-established estate, which is closely situated to Braddell MRT Station,” he says.
Other launches anticipated in 1Q2025 include the 113-unit Bagnall Haus, the 186-unit Aurea and the 760-unit Aurelle of Tampines EC.
Lee says he is “cautiously optimistic” about a better performance in the new private home sale market in 2025. “Some of the unsatiated demand in 2024 may flow over to the launches in 1Q2025,” he notes. Lee projects developer sales to rebound to between 7,000 and 8,000 units in 2025, while prices are estimated to grow between 4% and 7%.
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