Sluggish start to 2024 ends in decade-high home sales at year’s end
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish functionality of the private non commercial industry in the very first 3 quarters of 2024 developed an atypical year-end situation. “Developers, who had consistently postponed kick off due to financial unpredictabilities and expectations for improved situations, ultimately turned out projects in November.”
Additional evidence of raised sales energy arised on Oct 5, when more than 50% of the 226 units at Meyer Blue were gotten in private sales. Units were transacted at a common rate of $3,260 psf, setting a new measure for the prime District 15 enclave on the East Coast.
” Market sentiment was reluctant and cautious,” mentions Mark Yip, CEO of Huttons Asia. “It could be because of unpredictabilities in the occupation market and persistently high rate of interest. Buyers were most likely holding off, awaiting the highly anticipated project launches later in the year, like Chuan Park and Emerald of Katong.”
Norwood Grand was the very first new exclusive residential job released in Woodlands in 12 years. Its strong performance was also a clear indicator of growing customer trust and demand, according to Huttons’ Yip. It caused a tidal surge of event in November with a record-breaking 6 new ventures consisting of 3,551 units released over 10 days.
With cumulative brand-new home sales in 2024 likely to stay on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will rely on two factors: sustained sales momentum right into the initial quarter of 2025 and a concurrent sharp rise in property rates exceeding GDP growth.
In 3Q2024, brand-new home sales jumped 60% q-o-q, according to Huttons, that noted a change in view, which some attribute to the 50-basis point interest rate cut by the US Federal Reserve in September.
The 348-unit Norwood Grand in Woodlands additionally achieved several events. Over the weekend of October 19-20, it experienced a take-up level of 84%, causing it to the best-selling venture in regards to amount of sales since October. The common price of units offered was $2,067 psf, marking the first time a venture in Woodlands went beyond the $2,000 psf limit.
“Even with close tracking by authorities, new actions are most likely to stay on hold unless clear signs of relentless market overheating arise,” Chia incorporates.
Chia claims this decisive switch from vigilance to action was triggered by the coming close to year-end joyful lull and improved market belief since the 3rd quarter of 2024. “The surge in activity has transformed November into an unusually vibrant time frame for real estate launches, opposing the common seasonal stagnation and developing a dynamic industry environment.”
The solid November performance pressed overall property developer transactions for the early 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to go beyond 6,500 units, going beyond the 6,421 units marketed in 2023. “This shows the strength and flexibility of the real property market,” claims Huttons’ Yip. “It marks the enduring appeal of real property as an investment for wealth production and preservation.”
The real estate industry in 2024 unfolded in 2 starkly different parts. The very first half was sluggish, with store developments making centre stage and the smallest variety of units released for sale since 1H1996, according to Huttons Data Analytics. Sales amount mirrored this trend, with simply 1,889 units sold– the most affordable ever since 1996.
It started on Nov 6 with the launch 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 surged over the weekend break of Nov 15-16 with three projects started jointly: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condominium (EC).
Union Square Residences Singapore
The initial project 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 purchased at an average rate of $2,719 psf.
Developer profits in November skyrocketed to 2,557 units– the biggest amount ever since March 2013, when 3,489 units were released and 2,793 were marketed, according to Huttons Data Analytics.
Speculation is today rampant about the option of further real estate cooling actions, provided the uncharacteristically high November sales. “While November’s sales figures are remarkable, they provide an incomplete picture for predicting lessening measures,” Chia notes. “The market excitement was mainly generated by a year-end rush to launch projects.”
Yip notices that the launch of the 276-unit property Kassia on Flora Drive around late July, which attained a 52% take-up rate, set the stage for solid deals energy following the Lunar Seventh Month.
The exemption was the 533-unit Lentor Mansion, which accomplished a 75% take-up price throughout its launch weekend in March. A lot of other project launches in 1H2024 viewed reasonably lacklustre sales contrasted to 2023.
