The real estate market in 2024 had two distinctly different halves. The first half experienced a lackluster period with boutique developments leading the way, and the lowest number of units launched for sale since 1H1996, based on data from Huttons Data Analytics. Sales were also slow, with only 1,889 units sold – the lowest since 1996. The exception was 533-unit Lentor Mansion, which had a 75% take-up rate during its launch weekend in March. However, most other project launches in 1H2024 saw weak sales compared to the previous year.
According to Mark Yip, CEO of Huttons Asia, the market sentiment was tentative and cautious during this time. This could be attributed to the uncertainties in the job market and high interest rates. Buyers were likely waiting for highly anticipated project launches in the latter half of the year, such as Chuan Park and Emerald of Katong.
However, the market saw a shift in sentiment following the Lunar Seventh Month in late July, with the launch of the 276-unit freehold Kassia on Flora Drive. It achieved a 52% take-up rate, setting the stage for strong sales momentum.
The first new project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link, where 53% of its units were sold over the weekend of Sept 21-22 at an average price of $2,719 psf.
In 3Q2024, new home sales increased by 60% quarter-on-quarter, reflecting growing buyer confidence. This could be attributed to the 50-basis point interest rate cut by the US Federal Reserve in September.
In October, the market saw further evidence of increased sales momentum with the private sales launch of Meyer Blue, where over 50% of its 226 units were sold at an average price of $3,260 psf, setting a new benchmark for the prime District 15 area on the East Coast.
The 348-unit Norwood Grand in Woodlands also saw strong performance, with an 84% take-up rate over the weekend of October 19-20. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.
This was followed by a tidal wave of activity in November, with six new projects launched over a 10-day period, totaling 3,551 units. The surge in activity pushed developer sales for November to 2,557 units – the highest since March 2013. This brought the total developer sales for the first 11 months of 2024 to 6,344 units, with expectations of surpassing the 6,500 units sold in 2023.
According to Chia Siew Chuin, JLL’s head of residential research, this surge in activity was prompted by the approaching year-end festive lull and improved market sentiment. However, she believes any regulatory intervention is unlikely unless there is sustained sales momentum in the first quarter of 2025 and sharp increase in property prices outpacing GDP growth.