By the EdgeProp team
In the first six months of 2024, the property market in Singapore saw sluggish performance, with boutique developments dominating and the lowest number of units launched for sale since 1996. According to Huttons Data Analytics, only 1,889 units were sold, which is also the lowest figure since 1996. The exception was the launch of the 533-unit Lentor Mansion, which achieved a 75% take-up rate. However, most other project launches saw lackluster sales compared to the previous year.
Huttons Asia CEO Mark Yip notes that market sentiment was cautious and uncertain, possibly due to a weak job market and high interest rates. Buyers were likely holding back, waiting for highly anticipated project launches later in the year, such as Chuan Park and Emerald of Katong. Interested buyers can search for the latest New Launches to find out the transaction prices and available units.
However, towards the second half of 2024, there was a noticeable shift in sentiment. The launch of the 276-unit freehold Kassia on Flora Drive in late July achieved a 52% take-up rate, setting the stage for strong sales momentum following the Lunar Seventh Month. This was followed by the launch of the 158-unit 8@BT at Bukit Timah Link, which saw 53% of its units sold over the weekend of Sept 21–22.
In the third quarter of 2024, new home sales increased by 60% compared to the previous quarter, marking a significant shift in sentiment, which some attribute to the 50-basis point interest rate cut by the US Federal Reserve in September. This increase in sales momentum was further evidenced by the private sales of more than half of the 226 units at Meyer Blue on Oct 5, with units transacted at an average price of $3,260 psf, setting a new benchmark for the prime District 15 enclave on the East Coast.
The 348-unit Norwood Grand in Woodlands also achieved multiple milestones, with a take-up rate of 84% during its launch over the weekend of October 19-20, making it the best-selling project in terms of percentage of sales as of October. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.
The first new private residential project launched in Woodlands in 12 years, Norwood Grand’s strong performance was a clear signal of growing buyer confidence and demand, according to Yip. This triggered a wave of activity in November, with a record-breaking six new projects comprising 3,551 units unleashed over 10 days.
The surge in activity 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 Road on Nov 9. It continued with the launch of the 916-unit Chuan Park on Nov 10, and peaked on the weekend of Nov 15-16 with three projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC). As a result, developer sales in November soared to 2,557 units – the highest figure since March 2013.
The strong performance in November pushed total developer sales for the first 11 months of 2024 to 6,344 units, with year-end figures expected to surpass 6,500 units. This would exceed the 6,421 units sold in 2023, highlighting the strength and resilience of the property market and the enduring appeal of property as an asset for wealth creation and preservation, according to Yip.
Head of residential research at JLL, Chia Siew Chuin, notes that the sluggish performance of the private residential market in the first three quarters of 2024 created an atypical year-end scenario, with developers repeatedly postponing launches due to economic uncertainties and hopes for improved conditions. This led to a decisive shift from caution to action in November, triggered by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024. The surge in activity has transformed November into an unusually vibrant period for property launches, defying the typical seasonal slowdown and creating a dynamic market environment.
However, speculation is now rampant about the possibility of further property cooling measures, given the high sales in November. But Chia believes it’s unlikely, as the market exuberance was driven by a year-end rush to launch projects. She adds that any intervention will depend on sustained sales momentum in the first quarter of 2025 and a concurrent sharp increase in property prices outpacing GDP growth. Despite close monitoring by authorities, new measures are likely to remain on hold unless clear signs of persistent market overheating emerge.