Sluggish start to 2024 ends in decade-high home sales at year’s end
In 3Q2024, brand-new home sales jumped 60% q-o-q, according to Huttons, which noted a turn in sentiment, which some credit to the 50-basis factor rate of interest reduced by the United States Federal Reserve in September.
With cumulative brand-new home sales in 2024 most likely to continue to be on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will depend on 2 factors: continual sales momentum right into the very first quarter of 2025 and a simultaneous sharp surge 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 purchased at an average cost of $2,719 psf.
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 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).
Further proof of enhanced sales energy surfaced on Oct 5, when greater than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were settled at a common rate of $3,260 psf, establishing a brand-new standard for the prime District 15 enclave on the East Coast.
” Market view was reluctant and mindful,” mentions Mark Yip, CEO of Huttons Asia. “It could be because of unpredictabilities in the work market and constantly high interest rates. Buyers were likely restraining, waiting on the highly anticipated project launches later on in the year, including Chuan Park and Emerald of Katong.”
Developer sales in November skyrocketed to 2,557 units– the biggest amount ever since March 2013, when 3,489 units were released and 2,793 were sold, according to Huttons Data Analytics.
The strong November productivity drove complete property developer sales for the very first 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to exceed 6,500 units, exceeding the 6,421 units marketed in 2023. “This shows the strength and strength of the estate market,” says Huttons’ Yip. “It marks the lasting demand of property as an asset for wealth development and security.”
Chia claims this decisive shift from attention to action was motivated by the approaching year-end festive lull and enhanced market belief since the third quarter of 2024. “The growth in event has changed November into an uncommonly vivid time frame for property start, defying the common seasonal stagnation and creating a dynamic industry environment.”
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The 348-unit Norwood Grand in Woodlands even achieved numerous milestones. Over the weekend of October 19-20, it experienced a take-up rate of 84%, making it the very popular property in terms of percentage of sales since October. The average price of units sold was $2,067 psf, marking the first time a venture in Woodlands surpassed the $2,000 psf threshold.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private residential market in the very first 3 quarters of 2024 developed an irregular year-end situation. “Property developers, who had consistently postponed release as a result of financial unpredictabilities and optimisms for enhanced situations, lastly rolled out projects in November.”
Norwood Grand was the very first new nonpublic non commercial plan introduced in Woodlands in 12 years. Its solid performance was additionally a very clear signal of growing purchaser assurance and need, according to Huttons’ Yip. It activated a tidal wave of activity in November with a record-breaking six brand-new ventures comprising 3,551 units released over 10 days.
The real estate market in 2024 unravelled in two starkly different parts. The initial half was slow-moving, with store developments taking centre stage and the least variety of units introduced for sale since 1H1996, according to Huttons Data Analytics. Sales volume mirrored this pattern, with just 1,889 units sold– the most affordable since 1996.
The exemption was the 533-unit Lentor Mansion, that accomplished a 75% take-up price throughout its release weekend in March. A lot of other venture launches in 1H2024 observed reasonably lacklustre profits compared to 2023.
“Despite close checking by authorities, new procedures are most likely to stay on hold unless clear signs of consistent market overheating emerge,” Chia includes.
Yip observes that the dispatch of the 276-unit property Kassia on Flora Drive in late July, that achieved a 52% take-up price, set the setting for strong sales momentum following the Lunar Seventh Month.
Speculation is now rampant about the option of further real estate cooling actions, given the uncharacteristically high November sales. “While November’s sales figures are remarkable, they give an incomplete image for predicting cooling procedures,” Chia notes. “The marketplace excitement was largely generated by a year-end rush to launch projects.”
