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, that marked a change in sentiment, which some credit to the 50-basis point rate of interest cut by the US Federal Reserve in September.
Developer revenues in November soared to 2,557 units– the strongest amount ever since March 2013, when 3,489 units were introduced and 2,793 were sold, according to Huttons Data Analytics.
Speculation is now rampant about the choice of further property cooling actions, offered the uncharacteristically high November sales. “While November’s sales numbers are outstanding, they provide an incomplete picture for forecasting cooling steps,” Chia notes. “The market excitement was largely driven by a year-end thrill to introduce projects.”
Norwood Grand was the very first brand-new exclusive non commercial job launched in Woodlands in 12 years. Its solid performance was in addition an obvious sign of expanding purchaser confidence and need, according to Huttons’ Yip. It activated a tidal wave of action in November with a record-breaking six new assignments making up 3,551 units unleashed over 10 days.
“Despite close tracking by authorities, brand-new actions are likely to continue to be on hold unless clear signs of persistent market overheating arise,” Chia includes.
The solid November performance drove overall developer transactions for the very first 11 months of 2024 to 6,344 units. Year-end numbers are expected to go beyond 6,500 units, going beyond the 6,421 units marketed in 2023. “This mirrors the strength and resilience of the real property market,” claims Huttons’ Yip. “It underscores the lasting appearance of real property as an asset for wealth development and preservation.”
” Market view was reluctant and mindful,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “It could be because of uncertainties in the job market and persistently high rate of interest. Customers were most likely restraining, waiting for the highly anticipated plan launches later on in the year, including Chuan Park and Emerald of Katong.”
The initial project introduced 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 purchased at an average cost of $2,719 psf.
Yip notices that the launch of the 276-unit property Kassia on Flora Drive around late July, that achieved a 52% take-up price, set the scene for strong sales momentum following the Lunar Seventh Month.
With cumulative brand-new home sales in 2024 likely to continue to be on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any treatment, she claims, will depend upon two factors: sustained sales drive right into the first quarter of 2025 and a concurrent sharp rise in property prices surpassing GDP growth.
The exemption was the 533-unit Lentor Mansion, which attained a 75% take-up price during its launch weekend in March. Most various other project launches in 1H2024 observed fairly lacklustre revenues contrasted to 2023.
The 348-unit Norwood Grand in Woodlands also attained several events. Over the weekend of October 19-20, it saw a take-up level of 84%, causing it to the very popular property in terms of rate of sales since October. The average price of units offered was $2,067 psf, marking the very first time a venture in Woodlands went beyond the $2,000 psf limit.
The property industry in 2024 unfolded in 2 starkly contrasting parts. The very first half was slow-moving, with shop developments making centre stage and the lowest variety of units released for sale since 1H1996, according to Huttons Data Analytics. Sales quantity represented this fad, with simply 1,889 units sold– the lowest ever since 1996.
Further proof of boosted sales momentum surfaced on Oct 5, when greater than 50% of the 226 units at Meyer Blue were purchased in private sales. Units were settled at a normal rate of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
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 of Nov 15-16 with three plans launched together: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condominium (EC).
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private residential industry in the very first 3 quarters of 2024 created an irregular year-end situation. “Property developers, who had consistently held off launches due to economic unpredictabilities and expectations for improved conditions, lastly rolled out ventures in November.”
Chia says this absolute change from attention to response was prompted by the approaching year-end cheery lull and enhanced market belief since the 3rd quarter of 2024. “The growth in event has actually improved November right into an uncommonly vivid duration for real estate release, defying the common seasonal slowdown and developing a vibrant industry atmosphere.”
