Sluggish start to 2024 ends in decade-high home sales at year’s end
By Cecilia Chow
/ EdgeProp Singapore |
The 533-unit Lentor Mansion, which achieved a 75% take-up rate during its launch weekend in March, while most other project launches in 1H2024 saw relatively lacklustre sales (Photo: GuocoLand)
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The property market in 2024 unfolded in two starkly contrasting halves. The first half was sluggish, with boutique developments taking centre stage and the lowest number of units launched for sale since 1H1996, according to Huttons Data Analytics. Sales volume mirrored this trend, with just 1,889 units sold — the lowest since 1996.
The exception was the 533-unit Lentor Mansion, which achieved a 75% take-up rate during its launch weekend in March. Most other project launches in 1H2024 saw relatively lacklustre sales compared to 2023.
“Market sentiment was tentative and cautious,” notes Mark Yip, CEO of Huttons Asia. “It could be due to uncertainties in the job market and persistently high interest rates. Buyers were likely holding back, waiting for the highly anticipated project launches later in the year, such as Chuan Park and Emerald of Katong.”
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Yip observes that the launch of the 276-unit freehold Kassia on Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month.
The 276-unit freehold Kassia on Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month (Photo: Tripartite Developers)
The first project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend of Sept 21–22, 53% of its units were snapped up at an average price of $2,719 psf.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, which marked a shift in sentiment, which some attribute to the 50-basis point interest rate cut by the US Federal Reserve in September.
Further evidence of increased sales momentum emerged on Oct 5, when more than 50% of the 226 units at Meyer Blue were snapped up in private sales. Units were transacted at an average price of $3,260 psf, setting a new benchmark for the prime District 15 enclave on the East Coast.
The 348-unit Norwood Grand in Woodlands also achieved multiple milestones. Over the weekend of October 19-20, it saw a take-up rate of 84%, making it the best-selling project in terms of percentage of sales as of October. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.
The 158-unit 8@BT at Bukit Timah Link. Over the weekend of Sept 21–22, 53% of its units were snapped up at an average price of $2,719 psf (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Norwood Grand was the first new private residential project launched in Woodlands in 12 years. Its strong performance was also a clear signal of growing buyer confidence and demand, according to Huttons’ Yip. It triggered a tidal wave of activity in November with a record-breaking six new projects comprising 3,551 units unleashed over 10 days.
It began on Nov 6 with the launch 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 three projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Developer sales in November soared to 2,557 units — the highest figure since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
The strong November performance pushed total developer sales 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 sold in 2023. “This reflects the strength and resilience of the property market,” says Huttons’ Yip. “It underscores the enduring appeal of property as an asset for wealth creation and preservation.”
The 348-unit Norwood Grand in Woodlands had a take-up rate of 84% when it was launched in October. At an average price of $2,067 psf, it marked the first time a project in Woodlands surpassed the $2,000 psf threshold (Photo: CDL)
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residential market in the first three quarters of 2024 created an atypical year-end scenario. “Developers, who had repeatedly postponed launches due to economic uncertainties and hopes for improved conditions, finally rolled out projects in November.”
Chia says this decisive shift from caution to action was prompted by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024. “The surge in activity has transformed November into an unusually vibrant period for property launches, defying the typical seasonal slowdown and creating a dynamic market environment.”
Speculation is now rampant about the possibility of further property cooling measures, given the uncharacteristically high November sales. “While November’s sales figures are impressive, they provide an incomplete picture for predicting cooling measures,” Chia notes. “The market exuberance was largely driven by a year-end rush to launch projects.”
With cumulative new home sales in 2024 likely to remain on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she says, will depend on two factors: sustained sales momentum into the first quarter of 2025 and a concurrent sharp increase in property prices outpacing GDP growth.
“Despite close monitoring by authorities, new measures are likely to remain on hold unless clear signs of persistent market overheating emerge,” Chia adds.
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