Sluggish start to 2024 ends in decade-high home sales at year’s end
The property market in 2024 unravelled in two starkly contrasting halves. The initial half was slow-moving, with boutique developments taking centre stage and the smallest number of units released sold as 1H1996, according to Huttons Data Analytics. Sales volume mirrored this pattern, with simply 1,889 units sold– the most affordable ever since 1996.
The exemption was the 533-unit Lentor Mansion, which attained a 75% take-up price during its release weekend in March. A lot of other work launches in 1H2024 viewed relatively lacklustre sales compared to 2023.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the exclusive non commercial sector in the very first three quarters of 2024 produced an irregular year-end scenario. “Developers, who had consistently postponed release due to economic uncertainties and optimisms for enhanced conditions, finally turned out projects in November.”
The solid November productivity pushed total developer transactions for the early 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to go beyond 6,500 units, surpassing the 6,421 units marketed in 2023. “This reflects the stability and resilience of the real property market,” says Huttons’ Yip. “It emphasizes the lasting appeal of property as an asset for wealth development and conservation.”
The 348-unit Norwood Grand in Woodlands also attained numerous turning points. Over the weekend of October 19-20, it saw a take-up figure of 84%, reaching the very popular venture in terms of percentage of sales since October. The average cost of units offered was $2,067 psf, noting the first time a project in Woodlands surpassed the $2,000 psf threshold.
Developer sales in November rose to 2,557 units– the highest number since March 2013, when 3,489 units were launched and 2,793 were marketed, according to Huttons Data Analytics.
The very first campaign released 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 bought at a common price of $2,719 psf.
“Despite close tracking by authorities, new measures are most likely to continue to be on hold unless clear indications of relentless market overheating emerge,” Chia includes.
With cumulative brand-new home sales in 2024 most likely to continue to be comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she claims, will depend on two factors: sustained sales force right into the very first quarter of 2025 and a concurrent sharp surge in property rates outpacing GDP growth.
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, which marked a shift in belief, which some credit to the 50-basis point interest rate cut by the US Federal Reserve in September.
Chia says this decisive switch from vigilance to action was motivated by the approaching year-end festive lull and enhanced market sentiment from the third quarter of 2024. “The upsurge in event has actually changed November into an unusually vibrant time frame for property start, defying the regular seasonal downturn and creating a vibrant industry environment.”
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 together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Additional evidence of raised sales energy arised on Oct 5, the moment greater than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were negotiated at a normal price of $3,260 psf, setting a brand-new benchmark for the prime District 15 enclave on the East Coast.
Speculation is now rampant about the option of further real estate cooling actions, provided the uncharacteristically high November sales. “While November’s sales numbers are remarkable, they offer an incomplete image for forecasting lessening procedures,” Chia notes. “The market excitement was mostly driven by a year-end rush to launch projects.”
Yip notices that the launch of the 276-unit property Kassia on Flora Drive in late July, which accomplished a 52% take-up rate, set the scene for strong deals momentum following the Lunar Seventh Month.
Norwood Grand was the very first brand-new nonpublic residence project launched in Woodlands in 12 years. Its good performance was in addition an obvious indicator of expanding buyer assurance and need, according to Huttons’ Yip. It activated a tidal surge of action in November with a record-breaking 6 new assignments comprising 3,551 units released over 10 days.
” Market sentiment was tentative and mindful,” notes Mark Yip, CEO of Huttons Asia. “Maybe due to unpredictabilities in the occupation market and persistently high rate of interest. Purchasers were likely holding back, waiting for the highly anticipated plan launches later on in the year, like Chuan Park and Emerald of Katong.”
