Sluggish start to 2024 ends in decade-high home sales at year’s end
Norwood Grand was the 1st brand-new exclusive non commercial job introduced in Woodlands in 12 years. Its strong performance was also a very clear indicator of growing purchaser trust and demand, according to Huttons’ Yip. It triggered a tidal surge of activity in November with a record-breaking 6 new projects comprising 3,551 units unleashed over 10 days.
The exemption was the 533-unit Lentor Mansion, which accomplished a 75% take-up rate throughout its launch weekend in March. Most various other project launches in 1H2024 saw reasonably lacklustre profits contrasted to 2023.
Developer revenues in November soared to 2,557 units– the strongest figure ever since March 2013, when 3,489 units were introduced and 2,793 were marketed, according to Huttons Data Analytics.
With cumulative new home sales in 2024 most likely to remain on a par with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will depend upon 2 factors: continual sales drive right into the very first quarter of 2025 and a concurrent sharp surge in property costs exceeding GDP growth.
Yip observes that the launch of the 276-unit property Kassia on Flora Drive around late July, that attained a 52% take-up rate, established the scene for solid business energy following the Lunar Seventh Month.
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 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 3 plans released in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place exec condo (EC).
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private non commercial sector in the first three quarters of 2024 produced an irregular year-end situation. “Developers, that had consistently delayed kick off as a result of financial uncertainties and optimisms for better situations, ultimately presented ventures in November.”
“Despite close checking by authorities, brand-new steps are likely to stay on hold unless clear indicators of consistent market overheating emerge,” Chia adds.
The strong November efficiency drove overall property developer deals for the early 11 months of 2024 to 6,344 units. Year-end numbers are anticipated to go beyond 6,500 units, surpassing the 6,421 units offered in 2023. “This shows the strength and strength of the real property market,” states Huttons’ Yip. “It emphasizes the enduring appeal of real property as an investment for wealth development and conservation.”
The 348-unit Norwood Grand in Woodlands additionally achieved multiple breakthroughs. Over the weekend of October 19-20, it saw a take-up rate of 84%, causing it to the very popular venture in terms of amount of sales as of October. The standard cost of units sold was $2,067 psf, marking the first time a property in Woodlands surpassed the $2,000 psf threshold.
Speculation is today rampant about the choice of further property cooling procedures, provided the uncharacteristically high November sales. “While November’s sales figures are remarkable, they offer an insufficient image for anticipating lessening steps,” Chia notes. “The market exuberance was mainly driven by a year-end thrill to launch projects.”
In 3Q2024, brand-new home sales leapt 60% q-o-q, according to Huttons, which noted a change in belief, which some credit to the 50-basis factor rate of interest reduced by the US Federal Reserve in September.
Chia states this crucial change from attention to response was triggered by the coming close to year-end festive lull and improved market belief from the third quarter of 2024. “The upsurge in event has improved November into an unusually lively duration for real estate release, opposing the regular seasonal slowdown and developing a dynamic market setting.”
” Market sentiment was reluctant and careful,” mentions Mark Yip, CEO of Huttons Asia. “Perhaps due to unpredictabilities in the job market and persistently high rates of interest. Buyers were likely restraining, waiting for the highly anticipated plan launches later in the year, like Chuan Park and Emerald of Katong.”
Additional evidence of boosted sales energy emerged on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were snapped up in private sales. Units were transacted at an average cost of $3,260 psf, setting a brand-new measure for the prime District 15 enclave on the East Coast.
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 bought at a common price of $2,719 psf.
The property industry in 2024 unravelled in two starkly contrasting parts. The initial part was slow, with boutique developments getting centre stage and the lowest variety of units launched for sale as 1H1996, according to Huttons Data Analytics. Sales quantity mirrored this pattern, with just 1,889 units sold– the most affordable since 1996.
