Sluggish start to 2024 ends in decade-high home sales at year’s end
The property industry in 2024 unravelled in 2 starkly contrasting parts. The first part was slow-moving, with store developments taking centre stage and the least number of units launched for sale as 1H1996, according to Huttons Data Analytics. Sales volume mirrored this pattern, with just 1,889 units sold– the most affordable from 1996.
The solid November performance pressed total developer sales for the early 11 months of 2024 to 6,344 units. Year-end figures are expected to exceed 6,500 units, surpassing the 6,421 units offered in 2023. “This mirrors the strength and flexibility of the estate market,” says Huttons’ Yip. “It emphasizes the lasting appearance of real property as an investment for wealth production and preservation.”
With cumulative brand-new home sales in 2024 most likely to continue to be on a par with that in 2023, Chia considers regulatory intervention “unlikely”. Any intervention, she claims, will rely on 2 factors: continual sales drive right into the first quarter of 2025 and a concurrent sharp surge in property rates exceeding GDP growth.
Speculation is today rampant about the option of further property cooling steps, given the uncharacteristically high November sales. “While November’s sales figures are impressive, they provide an incomplete picture for anticipating lessening measures,” Chia notes. “The marketplace excitement was mostly generated by a year-end thrill to introduce projects.”
More proof of boosted sales energy arised on Oct 5, the moment 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, establishing a new standard for the prime District 15 enclave on the East Coast.
The 348-unit Norwood Grand in Woodlands additionally accomplished several turning points. Over the weekend of October 19-20, it experienced a take-up figure of 84%, making it the best-selling property in terms of rate of sales as of October. The average cost of units sold was $2,067 psf, noting the first time a property in Woodlands exceeded the $2,000 psf threshold.
It started 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 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 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 executive condominium (EC).
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, which noted a turn in sentiment, which some attribute to the 50-basis factor rate of interest cut by the US Federal Reserve in September.
The exception was the 533-unit Lentor Mansion, which attained a 75% take-up price during its release weekend in March. Many other venture launches in 1H2024 saw relatively lacklustre profits contrasted to 2023.
Chia states this decisive switch from attention to response was prompted by the coming close to year-end joyful lull and enhanced market sentiment since the 3rd quarter of 2024. “The upsurge in event has changed November into an unusually vibrant period for real estate launches, opposing the typical seasonal stagnation and creating a dynamic industry setting.”
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residence industry in the very first three quarters of 2024 created an atypical year-end situation. “Property developers, that had actually repetitively held off launches due to economic uncertainties and hopes for improved conditions, finally presented ventures in November.”
Yip observes that the dispatch of the 276-unit estate Kassia on Flora Drive in late July, that achieved a 52% take-up rate, set the stage for solid deals momentum following the Lunar Seventh Month.
Norwood Grand was the very first new nonpublic residential job launched in Woodlands in 12 years. Its solid performance was also a clear indicator of increasing purchaser assurance and demand, according to Huttons’ Yip. It caused a tidal upsurge of activity in November with a record-breaking 6 new ventures making up 3,551 units released over 10 days.
The very first project launched 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 grabbed at an average cost of $2,719 psf.
Developer profits in November soared to 2,557 units– the strongest number ever since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics.
“Even with close checking by authorities, new actions are likely to continue to be on hold unless clear signs of relentless market overheating emerge,” Chia incorporates.
” Market sentiment was tentative and careful,” mentions Mark Yip, Chief Executive Officer of Huttons Asia. “It could be due to unpredictabilities in the occupation market and persistently high rate of interest. Purchasers were likely holding off, waiting on the highly anticipated plan launches later in the year, such as Chuan Park and Emerald of Katong.”
