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 regarded a change in sentiment, which some attribute to the 50-basis point interest rate reduced by the US Federal Reserve in September.
Norwood Grand was the very first brand-new exclusive residential project introduced in Woodlands in 12 years. Its good performance was additionally a very clear signal of expanding customer assurance and demand, according to Huttons’ Yip. It caused a tidal wave of event in November with a record-breaking six brand-new ventures consisting of 3,551 units released over 10 days.
The 348-unit Norwood Grand in Woodlands even attained numerous breakthroughs. Over the weekend of October 19-20, it found a take-up rate of 84%, reaching the best-selling property in terms of rate of sales since October. The average rate of units sold was $2,067 psf, marking the very first time a venture in Woodlands surpassed the $2,000 psf threshold.
Speculation is now rampant about the possibility of further property cooling steps, provided the uncharacteristically high November sales. “While November’s sales numbers are impressive, they give an insufficient picture for forecasting lessening steps,” Chia notes. “The market exuberance was mostly generated by a year-end rush to launch projects.”
It began 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 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 three projects released jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
Developer profits in November rose to 2,557 units– the highest figure ever since March 2013, when 3,489 units were released and 2,793 were marketed, according to Huttons Data Analytics.
With cumulative new home sales in 2024 most likely to stay on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she states, will depend on 2 factors: sustained sales momentum into the initial quarter of 2025 and a simultaneous sharp rise in property rates exceeding GDP growth.
“Despite close checking by authorities, brand-new actions are likely to continue to be on hold unless clear indications of persistent market overheating arise,” Chia adds.
The strong November performance pushed overall property developer deals for the early 11 months of 2024 to 6,344 units. Year-end figures are anticipated to exceed 6,500 units, surpassing the 6,421 units offered in 2023. “This shows the durability and resilience of the estate market,” says Huttons’ Yip. “It emphasizes the enduring demand of real property as an investment for wealth creation and preservation.”
The first campaign launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend break of Sept 21– 22, 53% of its units were purchased at a common cost of $2,719 psf.
The property market in 2024 unfolded in 2 starkly contrasting halves. The very first part was slow-moving, with boutique developments taking centre stage and the least number of units introduced up for sale since 1H1996, according to Huttons Data Analytics. Sales amount represented this trend, with simply 1,889 units sold– the most affordable from 1996.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private non commercial sector in the first 3 quarters of 2024 created an irregular year-end scenario. “Developers, that had actually repetitively postponed release as a result of economic unpredictabilities and expectations for improved situations, finally presented projects in November.”
Chia claims this absolute change from vigilance to motion was motivated by the coming close to year-end joyful lull and boosted market sentiment since the third quarter of 2024. “The upsurge in activity has actually transformed November into an unusually lively time frame for real property start, resisting the regular seasonal stagnation and producing a dynamic industry atmosphere.”
The exception was the 533-unit Lentor Mansion, that attained a 75% take-up rate during its release weekend in March. A lot of other project launches in 1H2024 saw fairly lacklustre revenues contrasted to 2023.
Yip notices that the dispatch of the 276-unit property Kassia on Flora Drive in late July, which accomplished a 52% take-up price, established the setting for solid deals momentum following the Lunar Seventh Month.
” Market view was tentative and careful,” notes Mark Yip, CEO of Huttons Asia. “Perhaps because of uncertainties in the occupation market and constantly high rates of interest. Purchasers were most likely holding off, awaiting the extremely anticipated project launches later on in the year, such as Chuan Park and Emerald of Katong.”
Further proof of increased sales energy emerged on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were negotiated at an average rate of $3,260 psf, setting a new standard for the prime District 15 enclave on the East Coast.
