Sluggish start to 2024 ends in decade-high home sales at year’s end
Speculation is now rampant about the choice of further real estate cooling actions, provided the uncharacteristically high November sales. “While November’s sales figures are excellent, they supply an incomplete image for anticipating lessening actions,” Chia notes. “The market exuberance was largely driven by a year-end rush to launch projects.”
Norwood Grand was the very first new private non commercial project introduced in Woodlands in 12 years. Its strong performance was also a clear indicator of expanding customer trust and demand, according to Huttons’ Yip. It triggered a tidal upsurge of activity in November with a record-breaking six brand-new assignments making up 3,551 units unleashed over 10 days.
” Market belief was tentative and mindful,” mentions Mark Yip, CEO of Huttons Asia. “Maybe as a result of unpredictabilities in the occupation market and persistently high rate of interest. Purchasers were likely holding off, waiting on the extremely anticipated project launches later on in the year, like Chuan Park and Emerald of Katong.”
Developer revenues in November skyrocketed to 2,557 units– the strongest amount since March 2013, when 3,489 units were introduced and 2,793 were sold, according to Huttons Data Analytics.
More documentation of raised sales momentum arised on Oct 5, when greater than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were transacted at a common rate of $3,260 psf, setting a brand-new standard for the prime District 15 enclave on the East Coast.
The 348-unit Norwood Grand in Woodlands even attained several milestones. Over the weekend of October 19-20, it observed a take-up level of 84%, reaching the best-selling venture in regards to percentage of sales as of October. The standard cost of units sold was $2,067 psf, marking the first time a venture in Woodlands exceeded the $2,000 psf limit.
Yip sees that the launch of the 276-unit estate Kassia on Flora Drive in late July, that achieved a 52% take-up fee, established the stage for strong sales momentum following the Lunar Seventh Month.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the exclusive residence market in the first 3 quarters of 2024 created an atypical year-end situation. “Developers, that had consistently postponed launches as a result of financial uncertainties and hopes for enhanced conditions, ultimately turned out projects in November.”
The first project introduced after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend of Sept 21– 22, 53% of its units were bought at a common rate of $2,719 psf.
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 Roadway 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 3 projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
Chia claims this absolute change from vigilance to motion was prompted by the approaching year-end cheery lull and enhanced market belief since the third quarter of 2024. “The upsurge in activity has improved November into an uncommonly lively period for real estate launches, opposing the normal seasonal downturn and developing a vibrant market environment.”
With cumulative brand-new home sales in 2024 most likely to continue to be comparable with that in 2023, Chia considers regulatory intervention “unlikely”. Any treatment, she states, will rely on 2 factors: continual sales force right into the very first quarter of 2025 and a simultaneous sharp surge in property rates outpacing GDP growth.
The solid November performance drove overall developer transactions for the first 11 months of 2024 to 6,344 units. Year-end numbers are expected to surpass 6,500 units, going beyond the 6,421 units offered in 2023. “This reflects the durability and strength of the real property market,” states Huttons’ Yip. “It underscores the lasting appeal of property as an investment for wealth production and security.”
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, that regarded a shift in belief, which some credit to the 50-basis factor rate of interest cut by the US Federal Reserve in September.
The exemption was the 533-unit Lentor Mansion, that accomplished a 75% take-up price throughout its release weekend in March. Most other project launches in 1H2024 saw relatively lacklustre sales contrasted to 2023.
The real estate market in 2024 unfolded in 2 starkly different halves. The initial part was slow, with shop developments taking centre stage and the lowest variety of units released up for sale since 1H1996, according to Huttons Data Analytics. Sales quantity represented this pattern, with simply 1,889 units sold– the most affordable since 1996.
“Despite close monitoring by authorities, new actions are most likely to remain on hold unless clear indicators of relentless market overheating arise,” Chia incorporates.