Sluggish start to 2024 ends in decade-high home sales at year’s end
The property market in 2024 unravelled in 2 starkly contrasting parts. The very first part was sluggish, with shop developments making centre stage and the lowest number of units launched for sale ever since 1H1996, according to Huttons Data Analytics. Sales quantity represented this fad, with simply 1,889 units sold– the most affordable ever since 1996.
With cumulative new home sales in 2024 most likely to remain comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she states, will depend on 2 factors: continual sales momentum into the initial quarter of 2025 and a simultaneous sharp increase in property rates exceeding GDP growth.
Developer profits in November rose to 2,557 units– the strongest figure ever since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
Yip notices that the launch of the 276-unit estate Kassia on Flora Drive in late July, which attained a 52% take-up rate, established the scene for solid business momentum following the Lunar Seventh Month.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive non commercial sector in the first 3 quarters of 2024 developed an irregular year-end circumstance. “Developers, who had actually repetitively delayed release due to economic unpredictabilities and expectations for better situations, ultimately presented ventures in November.”
It began 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 Roadway on Nov 9. Momentum built up with the launch of the 916-unit Chuan Park on Nov 10, and it rose over the weekend of Nov 15-16 with 3 projects released in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
The 348-unit Norwood Grand in Woodlands also accomplished multiple events. Over the weekend of October 19-20, it observed a take-up level of 84%, reaching the best-selling property in regards to rate of sales as of October. The standard cost of units marketed was $2,067 psf, noting the very first time a venture in Woodlands exceeded the $2,000 psf limit.
The first assignment released after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Web Link. Over the weekend of Sept 21– 22, 53% of its units were snapped up at a standard rate of $2,719 psf.
The exception was the 533-unit Lentor Mansion, which accomplished a 75% take-up rate throughout its release weekend in March. Many other venture launches in 1H2024 saw reasonably lacklustre revenues contrasted to 2023.
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, that noted a turn in sentiment, which some credit to the 50-basis factor rate of interest cut by the US Federal Reserve in September.
The strong November efficiency pressed total property developer transactions for the very first 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to go beyond 6,500 units, going beyond the 6,421 units offered in 2023. “This reflects the durability and resilience of the real estate market,” says Huttons’ Yip. “It emphasizes the long-lasting appearance of property as an asset for wealth production and conservation.”
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Chia claims this crucial change from caution to response was triggered by the approaching year-end festive lull and improved market belief from the 3rd quarter of 2024. “The upsurge in event has actually improved November right into an unusually vivid period for real property start, defying the common seasonal stagnation and creating a dynamic market environment.”
” Market view was tentative and cautious,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “Perhaps because of uncertainties in the occupation market and constantly high rate of interest. Customers were most likely holding back, waiting for the extremely anticipated project launches later on in the year, including Chuan Park and Emerald of Katong.”
Norwood Grand was the 1st brand-new private non commercial job introduced in Woodlands in 12 years. Its solid performance was also a very clear sign of expanding purchaser trust and demand, according to Huttons’ Yip. It set off a tidal upsurge of action in November with a record-breaking six new projects consisting of 3,551 units released over 10 days.
“Even with close tracking by authorities, brand-new actions are likely to remain on hold unless clear signs of consistent market overheating arise,” Chia adds.
Additional evidence of raised sales momentum surfaced on Oct 5, when more than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were negotiated at an average cost of $3,260 psf, establishing a new standard for the prime District 15 enclave on the East Coast.
Speculation is now rampant about the possibility of further property cooling procedures, provided the uncharacteristically high November sales. “While November’s sales numbers are excellent, they provide an insufficient picture for anticipating cooling procedures,” Chia notes. “The marketplace liveliness was mainly steered by a year-end thrill to release projects.”
