Sluggish start to 2024 ends in decade-high home sales at year’s end
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, that noted a turn in view, which some attribute to the 50-basis point interest rate cut by the United States Federal Reserve in September.
” Market belief was tentative and cautious,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “Perhaps due to uncertainties in the occupation market and persistently high rates of interest. Customers were most likely holding off, waiting for the extremely anticipated plan launches later on in the year, like Chuan Park and Emerald of Katong.”
Further evidence of raised sales energy emerged on Oct 5, when greater than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were transacted at an average price of $3,260 psf, setting a brand-new benchmark for the prime District 15 enclave on the East Coast.
The property market in 2024 unravelled in 2 starkly different parts. The first part was slow, with shop developments making centre stage and the smallest variety of units released for sale ever since 1H1996, according to Huttons Data Analytics. Sales quantity mirrored this pattern, with just 1,889 units sold– the lowest ever since 1996.
Yip notices that the dispatch of the 276-unit property Kassia on Flora Drive around late July, that accomplished a 52% take-up rate, set the stage for strong business momentum following the Lunar Seventh Month.
It started 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 of Nov 15-16 with 3 plans introduced jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
Norwood Grand was the first new exclusive non commercial plan introduced in Woodlands in 12 years. Its solid performance was also an obvious signal of increasing customer assurance and demand, according to Huttons’ Yip. It triggered a tidal surge of activity in November with a record-breaking 6 new ventures comprising 3,551 units unleashed over 10 days.
The exception was the 533-unit Lentor Mansion, which accomplished a 75% take-up rate throughout its release weekend in March. A lot of other venture launches in 1H2024 viewed relatively lacklustre revenues contrasted to 2023.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the exclusive non commercial sector in the very first three quarters of 2024 developed an irregular year-end situation. “Property developers, that had repeatedly held off launches due to economic unpredictabilities and hopes for better situations, ultimately turned out ventures in November.”
Chia states this absolute switch from attention to response was motivated by the coming close to year-end cheery lull and enhanced market sentiment since the third quarter of 2024. “The upsurge in event has actually changed November into an unusually lively time frame for real estate launches, opposing the common seasonal stagnation and developing a dynamic industry atmosphere.”
“Even with close tracking by authorities, new measures are likely to remain on hold unless clear indicators of consistent market overheating arise,” Chia incorporates.
Speculation is today rampant about the choice of further real estate cooling actions, given the uncharacteristically high November sales. “While November’s sales figures are excellent, they supply an incomplete picture for forecasting lessening actions,” Chia notes. “The market excitement was mostly steered by a year-end rush to launch projects.”
The 348-unit Norwood Grand in Woodlands also attained numerous turning points. Over the weekend of October 19-20, it experienced a take-up rate of 84%, making it the best-selling venture in terms of percentage of sales since October. The average rate of units marketed was $2,067 psf, noting the first time a venture in Woodlands surpassed the $2,000 psf limit.
The strong November performance pushed complete property developer deals for the very first 11 months of 2024 to 6,344 units. Year-end figures are expected to surpass 6,500 units, exceeding the 6,421 units marketed in 2023. “This mirrors the durability and flexibility of the real estate market,” claims Huttons’ Yip. “It underscores the lasting appeal of real property as an investment for wealth production and preservation.”
With cumulative new home sales in 2024 most likely to remain comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she claims, will depend on 2 factors: sustained sales momentum into the first quarter of 2025 and a simultaneous sharp increase in property rates exceeding GDP growth.
The very first campaign introduced after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Web Link. Over the weekend break of Sept 21– 22, 53% of its units were grabbed at an average rate of $2,719 psf.
Developer revenues in November rose to 2,557 units– the highest amount since March 2013, when 3,489 units were launched and 2,793 were marketed, according to Huttons Data Analytics.
