Sluggish start to 2024 ends in decade-high home sales at year’s end
The first project 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 purchased at a standard rate of $2,719 psf.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private residential industry in the very first three quarters of 2024 developed an atypical year-end scenario. “Property developers, who had actually consistently held off kick off due to financial uncertainties and hopes for enhanced situations, finally presented ventures in November.”
Yip notices that the dispatch of the 276-unit property Kassia on Flora Drive around late July, which attained a 52% take-up fee, set the stage for strong sales energy following the Lunar Seventh Month.
The 348-unit Norwood Grand in Woodlands even accomplished several turning points. Over the weekend of October 19-20, it experienced a take-up level of 84%, making it the best-selling property in regards to rate of sales since October. The average rate of units sold was $2,067 psf, noting the first time a venture in Woodlands went beyond the $2,000 psf limit.
Chia states this crucial change from caution to response was prompted by the coming close to year-end festive lull and enhanced market sentiment since the third quarter of 2024. “The growth in activity has transformed November into an unusually vibrant time frame for property release, defying the normal seasonal stagnation and developing a vibrant industry atmosphere.”
The exception was the 533-unit Lentor Mansion, that accomplished a 75% take-up rate during its launch weekend in March. Many various other project launches in 1H2024 saw fairly lacklustre sales contrasted to 2023.
It started on Nov 6 with the kick off 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 surged over the weekend of Nov 15-16 with three plans introduced together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Speculation is now rampant about the option of further real estate cooling measures, offered the uncharacteristically high November sales. “While November’s sales figures are excellent, they offer an incomplete picture for forecasting cooling actions,” Chia notes. “The marketplace excitement was largely generated by a year-end thrill to release projects.”
Norwood Grand was the very first brand-new exclusive residence plan released in Woodlands in 12 years. Its solid performance was also an obvious signal of expanding buyer confidence and demand, according to Huttons’ Yip. It triggered a tidal wave of event in November with a record-breaking 6 brand-new ventures making up 3,551 units unleashed over 10 days.
With cumulative brand-new home sales in 2024 likely to continue to be on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she says, will depend upon 2 factors: continual sales force into the very first quarter of 2025 and a simultaneous sharp surge in property costs outpacing GDP growth.
“Despite close monitoring by authorities, new steps are most likely to stay on hold unless clear indicators of persistent market overheating arise,” Chia adds.
In 3Q2024, new home sales jumped 60% q-o-q, according to Huttons, which regarded a shift in belief, which some credit to the 50-basis point interest rate reduced by the United States Federal Reserve in September.
” Market belief was tentative and mindful,” notes Mark Yip, CEO of Huttons Asia. “It could be as a result of unpredictabilities in the work market and constantly high rate of interest. Buyers were most likely holding off, waiting on the extremely anticipated project launches later in the year, like Chuan Park and Emerald of Katong.”
The strong November performance pushed overall developer sales for the first 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to surpass 6,500 units, exceeding the 6,421 units marketed in 2023. “This shows the durability and resilience of the real estate market,” claims Huttons’ Yip. “It underscores the long-lasting demand of real property as an asset for wealth production and conservation.”
Developer profits in November rose to 2,557 units– the biggest amount ever since March 2013, when 3,489 units were launched and 2,793 were marketed, according to Huttons Data Analytics.
The property market in 2024 unfolded in two starkly different parts. The initial half was slow, with boutique developments making centre stage and the lowest number of units launched for sale since 1H1996, according to Huttons Data Analytics. Sales volume mirrored this trend, with simply 1,889 units sold– the lowest ever since 1996.
Additional documentation of increased sales energy arised on Oct 5, when more than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were negotiated at an average price of $3,260 psf, establishing a new standard for the prime District 15 enclave on the East Coast.
