Sluggish start to 2024 ends in decade-high home sales at year’s end
Norwood Grand was the 1st brand-new nonpublic residence project introduced in Woodlands in 12 years. Its good performance was also an obvious sign of growing customer assurance and demand, according to Huttons’ Yip. It triggered a tidal upsurge of activity in November with a record-breaking six brand-new ventures making up 3,551 units released over 10 days.
Chia claims this absolute shift from caution to response was triggered by the approaching year-end joyful lull and improved market belief since the 3rd quarter of 2024. “The growth in event has actually transformed November right into an uncommonly vivid period for real property start, resisting the regular seasonal downturn and creating a vibrant industry atmosphere.”
The exemption was the 533-unit Lentor Mansion, which attained a 75% take-up rate during its launch weekend in March. Most various other project launches in 1H2024 observed relatively lacklustre profits compared to 2023.
The Myst Condo showflat location
Yip sees that the dispatch of the 276-unit property Kassia on Flora Drive around late July, which accomplished a 52% take-up fee, set the setting for solid business energy following the Lunar Seventh Month.
The 348-unit Norwood Grand in Woodlands also achieved numerous turning points. Over the weekend of October 19-20, it observed a take-up level of 84%, making it the very popular property in regards to rate of sales since October. The standard cost of units marketed was $2,067 psf, noting the very first time a property in Woodlands exceeded the $2,000 psf limit.
In 3Q2024, brand-new home sales jumped 60% q-o-q, according to Huttons, which regarded a turn in sentiment, which some credit to the 50-basis point rate of interest cut by the United States Federal Reserve in September.
“Despite close checking by authorities, new steps are likely to remain on hold unless clear signs of persistent market overheating arise,” Chia incorporates.
” Market view was tentative and careful,” notes Mark Yip, Chief Executive Officer of Huttons Asia. “Maybe due to uncertainties in the occupation market and constantly high rate of interest. Customers were most likely holding off, waiting on the extremely anticipated plan launches later in the year, such as Chuan Park and Emerald of Katong.”
Speculation is today rampant about the possibility of further real estate cooling measures, offered the uncharacteristically high November sales. “While November’s sales figures are excellent, they give an insufficient image for anticipating lessening actions,” Chia notes. “The market exuberance was largely driven by a year-end thrill to launch projects.”
It began 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 of Nov 15-16 with 3 plans started 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 performance of the private residence industry in the first 3 quarters of 2024 created an atypical year-end situation. “Property developers, that had actually repetitively delayed release as a result of economic unpredictabilities and optimisms for better situations, lastly turned out ventures in November.”
Developer sales in November skyrocketed to 2,557 units– the strongest number since March 2013, when 3,489 units were introduced and 2,793 were offered, according to Huttons Data Analytics.
The strong November performance pressed complete property developer deals for the first 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to exceed 6,500 units, surpassing the 6,421 units marketed in 2023. “This reflects the durability and resilience of the real property market,” states Huttons’ Yip. “It marks the long-lasting appearance of property as an asset for wealth creation and security.”
The property industry in 2024 unravelled in two starkly contrasting halves. The first part was slow-moving, with boutique developments taking centre stage and the lowest variety of units launched sold since 1H1996, according to Huttons Data Analytics. Sales volume represented this fad, with just 1,889 units sold– the most affordable from 1996.
The first campaign 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 snapped up at an average price of $2,719 psf.
With cumulative new home sales in 2024 most likely to stay on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she says, will depend on 2 factors: continual sales drive into the first quarter of 2025 and a concurrent sharp increase in property prices surpassing GDP growth.
Additional proof of boosted sales energy arised on Oct 5, when greater than 50% of the 226 units at Meyer Blue were grabbed in private sales. Units were negotiated at an average cost of $3,260 psf, setting a brand-new standard for the prime District 15 enclave on the East Coast.
