Sluggish start to 2024 ends in decade-high home sales at year’s end
Developer revenues in November skyrocketed to 2,557 units– the biggest amount ever since March 2013, when 3,489 units were introduced and 2,793 were marketed, according to Huttons Data Analytics.
Speculation is today rampant about the possibility of further property cooling steps, provided the uncharacteristically high November sales. “While November’s sales figures are remarkable, they offer an incomplete picture for predicting lessening procedures,” Chia notes. “The market liveliness was greatly steered by a year-end rush to launch projects.”
The exemption was the 533-unit Lentor Mansion, that accomplished a 75% take-up rate during its launch weekend in March. Most various other venture launches in 1H2024 saw reasonably lacklustre revenues contrasted to 2023.
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 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 three projects released in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
Chia states this decisive change from caution to motion was prompted by the approaching year-end cheery lull and enhanced market belief from the 3rd quarter of 2024. “The upsurge in activity has transformed November right into an unusually vivid duration for property start, resisting the typical seasonal slowdown and creating a vibrant industry environment.”
The 348-unit Norwood Grand in Woodlands even accomplished multiple turning points. Over the weekend of October 19-20, it saw a take-up figure of 84%, making it the very popular project in terms of rate of sales since October. The common rate of units marketed was $2,067 psf, marking the very first time a property in Woodlands went beyond the $2,000 psf limit.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the exclusive residence market in the first 3 quarters of 2024 developed an atypical year-end circumstance. “Property developers, who had repeatedly held off kick off as a result of financial uncertainties and optimisms for enhanced situations, ultimately turned out projects in November.”
With cumulative brand-new home sales in 2024 likely to remain on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she states, will depend upon 2 factors: continual sales drive right into the initial quarter of 2025 and a concurrent sharp rise in property costs exceeding GDP growth.
” Market view was tentative and cautious,” notes Mark Yip, CEO of Huttons Asia. “Maybe because of unpredictabilities in the occupation market and constantly high rate of interest. Buyers were most likely restraining, waiting for the extremely anticipated plan launches later on in the year, such as Chuan Park and Emerald of Katong.”
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, that noted a turn in sentiment, which some attribute to the 50-basis point rate of interest cut by the US Federal Reserve in September.
The very first campaign introduced 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 bought at a common cost of $2,719 psf.
“Even with close checking by authorities, brand-new measures are likely to continue to be on hold unless clear indicators of consistent market overheating emerge,” Chia incorporates.
The solid November performance pushed total developer transactions for the very first 11 months of 2024 to 6,344 units. Year-end figures are anticipated to go beyond 6,500 units, going beyond the 6,421 units marketed in 2023. “This reflects the durability and resilience of the property market,” says Huttons’ Yip. “It emphasizes the lasting demand of real property as an investment for wealth creation and conservation.”
Additional evidence of raised sales energy surfaced on Oct 5, the moment greater than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were settled at a normal rate of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
Norwood Grand was the very first brand-new exclusive non commercial job launched in Woodlands in 12 years. Its solid performance was in addition a very clear sign of expanding customer confidence and demand, according to Huttons’ Yip. It caused a tidal upsurge of action in November with a record-breaking six brand-new ventures making up 3,551 units released over 10 days.
Yip sees that the launch of the 276-unit freehold Kassia on Flora Drive around late July, which accomplished a 52% take-up price, established the scene for strong sales momentum following the Lunar Seventh Month.
The real estate industry in 2024 unfolded in 2 starkly contrasting halves. The initial half was slow-moving, with boutique developments getting centre stage and the smallest number of units released sold ever since 1H1996, according to Huttons Data Analytics. Sales amount represented this pattern, with simply 1,889 units sold– the most affordable from 1996.
