Sluggish start to 2024 ends in decade-high home sales at year’s end
With cumulative new home sales in 2024 most likely to remain on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she says, will depend on 2 factors: continual sales momentum right into the initial quarter of 2025 and a simultaneous sharp surge in property prices surpassing GDP growth.
The solid November efficiency pressed total developer transactions for the very first 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to surpass 6,500 units, going beyond the 6,421 units sold in 2023. “This shows the durability and flexibility of the estate market,” states Huttons’ Yip. “It emphasizes the long-lasting appearance of real property as an investment for wealth creation and preservation.”
The exception was the 533-unit Lentor Mansion, which attained a 75% take-up price throughout its release weekend in March. Many other work launches in 1H2024 saw reasonably lacklustre revenues compared to 2023.
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 surged over the weekend break of Nov 15-16 with three projects introduced jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
“Despite close monitoring by authorities, brand-new measures are likely to remain on hold unless clear indicators of persistent market overheating arise,” Chia incorporates.
Chia says this crucial shift from caution to motion was prompted by the approaching year-end cheery lull and improved market sentiment from the 3rd quarter of 2024. “The surge in event has changed November right into an unusually vivid time frame for real estate release, opposing the common seasonal stagnation and producing a vibrant industry setting.”
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the exclusive residential industry in the very first 3 quarters of 2024 created an irregular year-end situation. “Developers, who had actually continuously held off release because of financial uncertainties and hopes for better situations, finally presented ventures in November.”
Yip sees that the dispatch of the 276-unit property Kassia on Flora Drive in late July, that attained a 52% take-up price, set the stage for strong business momentum following the Lunar Seventh Month.
Further evidence of boosted sales energy arised on Oct 5, when more than 50% of the 226 units at Meyer Blue were bought in private sales. Units were negotiated at a common price of $3,260 psf, establishing a brand-new benchmark for the prime District 15 enclave on the East Coast.
The very first assignment 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 bought at a standard cost of $2,719 psf.
The 348-unit Norwood Grand in Woodlands even achieved multiple turning points. Over the weekend of October 19-20, it observed a take-up figure of 84%, making it the very popular property in terms of rate of sales since October. The standard price of units marketed was $2,067 psf, noting the very first time a venture in Woodlands surpassed the $2,000 psf threshold.
Developer profits in November rose to 2,557 units– the biggest figure since March 2013, when 3,489 units were released and 2,793 were offered, according to Huttons Data Analytics.
Norwood Grand was the 1st brand-new nonpublic non commercial project introduced in Woodlands in 12 years. Its strong performance was additionally an obvious sign of expanding buyer assurance and need, according to Huttons’ Yip. It triggered a tidal wave of action in November with a record-breaking 6 brand-new ventures comprising 3,551 units released over 10 days.
Speculation is today rampant about the choice of further property cooling measures, given the uncharacteristically high November sales. “While November’s sales numbers are excellent, they give an insufficient picture for forecasting lessening actions,” Chia notes. “The marketplace excitement was mostly generated by a year-end rush to introduce projects.”
The real estate market in 2024 unravelled in two starkly different parts. The initial part was sluggish, with store developments getting centre stage and the lowest number of units introduced sold since 1H1996, according to Huttons Data Analytics. Sales volume represented this trend, with just 1,889 units sold– the lowest ever since 1996.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, which noted a change in belief, which some attribute to the 50-basis point rate of interest cut by the United States Federal Reserve in September.
” Market belief was reluctant and mindful,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “It could be as a result of unpredictabilities in the job market and constantly high rate of interest. Customers were likely holding off, waiting on the highly anticipated project launches later in the year, including Chuan Park and Emerald of Katong.”
