Sluggish start to 2024 ends in decade-high home sales at year’s end
Developer revenues in November rose to 2,557 units– the highest figure since March 2013, when 3,489 units were released and 2,793 were sold, according to Huttons Data Analytics.
The real estate industry in 2024 unfolded in two starkly contrasting halves. The initial part was sluggish, with shop developments taking centre stage and the least number of units released up for sale as 1H1996, according to Huttons Data Analytics. Sales amount mirrored this pattern, with just 1,889 units sold– the most affordable since 1996.
Yip notices that the dispatch of the 276-unit estate Kassia on Flora Drive around late July, which achieved a 52% take-up price, set the stage for solid business energy following the Lunar Seventh Month.
Additional documentation of increased sales momentum surfaced on Oct 5, the moment more than 50% of the 226 units at Meyer Blue were snapped up in private sales. Units were negotiated at a common cost of $3,260 psf, establishing a brand-new standard for the prime District 15 enclave on the East Coast.
“Even with close monitoring by authorities, brand-new procedures are most likely to remain on hold unless clear signs of relentless market overheating emerge,” Chia includes.
In 3Q2024, new home sales leapt 60% q-o-q, according to Huttons, that noted a switch in view, which some attribute to the 50-basis factor interest rate reduced by the US Federal Reserve in September.
The first project released after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Web Link. Over the weekend break of Sept 21– 22, 53% of its units were snapped up at an average rate of $2,719 psf.
” Market view was reluctant and cautious,” notes Mark Yip, Chief Executive Officer of Huttons Asia. “Maybe because of unpredictabilities in the job market and constantly high interest rates. Customers were most likely holding back, waiting on the extremely anticipated project launches later on in the year, such as Chuan Park and Emerald of Katong.”
Norwood Grand was the very first new nonpublic non commercial plan released in Woodlands in 12 years. Its good performance was additionally an obvious signal of increasing purchaser confidence and demand, according to Huttons’ Yip. It activated a tidal wave of event in November with a record-breaking 6 brand-new assignments comprising 3,551 units unleashed over 10 days.
The strong November efficiency pushed overall property developer transactions for the first 11 months of 2024 to 6,344 units. Year-end numbers are expected to surpass 6,500 units, surpassing the 6,421 units offered in 2023. “This mirrors the stability and flexibility of the real estate market,” claims Huttons’ Yip. “It underscores the enduring demand of real property as an investment for wealth development and conservation.”
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 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 functionality of the private residential industry in the very first 3 quarters of 2024 produced an atypical year-end situation. “Property developers, that had actually consistently held off release because of financial unpredictabilities and expectations for better situations, lastly presented projects in November.”
The 348-unit Norwood Grand in Woodlands even accomplished numerous breakthroughs. Over the weekend of October 19-20, it found a take-up figure of 84%, reaching the very popular venture in regards to amount of sales since October. The common cost of units marketed was $2,067 psf, noting the very first time a property in Woodlands surpassed the $2,000 psf limit.
Speculation is now rampant about the option of further property cooling measures, offered the uncharacteristically high November sales. “While November’s sales numbers are excellent, they supply an incomplete picture for anticipating cooling actions,” Chia notes. “The marketplace exuberance was mainly steered by a year-end thrill to release projects.”
With cumulative brand-new home sales in 2024 likely to remain comparable with that in 2023, Chia considers regulatory treatment “unlikely”. Any intervention, she claims, will rely on 2 factors: continual sales force right into the initial quarter of 2025 and a concurrent sharp rise in property prices surpassing GDP growth.
Chia claims this crucial change from caution to motion was motivated by the approaching year-end joyful lull and enhanced market sentiment from the third quarter of 2024. “The upsurge in activity has actually improved November right into an uncommonly dynamic period for property release, opposing the typical seasonal stagnation and developing a vibrant industry setting.”
The exemption was the 533-unit Lentor Mansion, which attained a 75% take-up price throughout its release weekend in March. Most other project launches in 1H2024 viewed relatively lacklustre revenues compared to 2023.
