Sluggish start to 2024 ends in decade-high home sales at year’s end
Developer profits in November soared to 2,557 units– the strongest number ever since March 2013, when 3,489 units were introduced and 2,793 were offered, according to Huttons Data Analytics.
It started 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 Road 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 introduced together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Norwood Grand was the 1st new exclusive residence job introduced in Woodlands in 12 years. Its solid performance was in addition a clear sign of increasing customer assurance and demand, according to Huttons’ Yip. It triggered a tidal surge of action in November with a record-breaking six new ventures consisting of 3,551 units released over 10 days.
The solid November productivity pushed total property developer sales for the early 11 months of 2024 to 6,344 units. Year-end figures are expected to exceed 6,500 units, exceeding the 6,421 units marketed in 2023. “This shows the strength and flexibility of the real property market,” claims Huttons’ Yip. “It emphasizes the lasting demand of property as an investment for wealth creation and conservation.”
“Even with close tracking by authorities, brand-new procedures are most likely to remain on hold unless clear indicators of persistent market overheating emerge,” Chia incorporates.
The real estate market in 2024 unfolded in two starkly contrasting halves. The first part was slow, with boutique developments getting centre stage and the smallest number of units launched for sale ever since 1H1996, according to Huttons Data Analytics. Sales quantity mirrored this pattern, with simply 1,889 units sold– the lowest from 1996.
The Arcady @ Boon Keng floor plan
Further evidence of increased sales momentum surfaced on Oct 5, when more than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were transacted at a normal price of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
The exemption was the 533-unit Lentor Mansion, which achieved a 75% take-up price throughout its release weekend in March. A lot of various other work launches in 1H2024 viewed reasonably lacklustre profits compared to 2023.
The very 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 gotten at an average price of $2,719 psf.
Yip sees that the launch of the 276-unit property Kassia on Flora Drive around late July, that attained a 52% take-up fee, established the setting for strong business momentum following the Lunar Seventh Month.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, that noted a turn in belief, which some attribute to the 50-basis factor rate of interest cut by the United States Federal Reserve in September.
The 348-unit Norwood Grand in Woodlands additionally accomplished numerous milestones. Over the weekend of October 19-20, it found a take-up figure of 84%, causing it to the best-selling property in regards to percentage of sales since October. The common price of units marketed was $2,067 psf, noting the very first time a property in Woodlands surpassed the $2,000 psf threshold.
” Market belief was reluctant and mindful,” mentions Mark Yip, CEO of Huttons Asia. “It could be because of uncertainties in the occupation market and persistently high rate of interest. Customers were likely restraining, awaiting the extremely anticipated project launches later in the year, including Chuan Park and Emerald of Katong.”
Chia states this decisive change from vigilance to response was motivated by the approaching year-end joyful lull and boosted market sentiment from the third quarter of 2024. “The growth in activity has actually improved November right into an uncommonly dynamic period for property release, resisting the typical seasonal downturn and creating a vibrant market setting.”
With cumulative new home sales in 2024 most likely to stay comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she states, will rely on two factors: sustained sales force right into the initial quarter of 2025 and a concurrent sharp surge in property prices exceeding GDP growth.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private non commercial market in the first 3 quarters of 2024 produced an atypical year-end circumstance. “Property developers, who had actually consistently held off kick off due to financial unpredictabilities and expectations for enhanced conditions, ultimately presented ventures in November.”
Speculation is now rampant about the choice of further real estate cooling actions, provided the uncharacteristically high November sales. “While November’s sales numbers are excellent, they give an insufficient image for anticipating cooling steps,” Chia notes. “The market excitement was mostly steered by a year-end rush to introduce projects.”
