to $2.4mil
In 2024, the property market experienced two drastically different periods. The first half of the year was slow, with boutique developments taking the spotlight and the lowest number of units launched for sale since the first half of 1996, according to data from Huttons Data Analytics. Sales volume followed the same trend, with only 1,889 units sold – the lowest since 1996.
The only exception was Lentor Mansion, a 533-unit development that saw a 75% take-up rate during its launch weekend in March. Other project launches in the first half of 2024 had relatively lackluster sales compared to the previous year.
“The market sentiment was cautious and tentative,” noted Mark Yip, the CEO of Huttons Asia. “This could be due to uncertainties in the job market and persistently 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.”
However, the launch of Kassia, a 276-unit freehold development on Flora Drive in late July, set the stage for a strong sales momentum following the Lunar Seventh Month. It achieved a 52% take-up rate, and according to Yip, it was a sign of growing buyer confidence and demand.
Kassia’s launch was followed by other successful projects, including the 158-unit 8@BT at Bukit Timah Link, where 53% of units were sold over the weekend of Sept. 21-22 at an average price of $2,719 psf.
In the third quarter of 2024, new home sales increased by 60% compared to the previous quarter, according to Huttons, marking a shift in sentiment that some attribute to the 50-basis point interest rate cut by the US Federal Reserve in September.
The strong sales momentum was evident on Oct. 5 when more than 50% of the 226 units at Meyer Blue were sold in private sales 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. Over the weekend of October 19-20, it saw a take-up rate of 84%, 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, the first time a Woodlands development surpassed the $2,000 psf threshold.
The success of Norwood Grand, the first new private residential project launched in Woodlands in 12 years, was a clear sign of growing buyer confidence and demand, according to Yip. It also triggered a wave of activity in November, with a record-breaking six new projects comprising 3,551 units launched over 10 days.
The trend started on Nov. 6 with the launch of The Collective at One Sophia, a 367-unit development, followed by Union Square Residences, a 366-unit development, on Nov. 9. Momentum continued with the launch of the 916-unit Chuan Park on Nov. 10, and the surge continued over the weekend of Nov. 15-16 with three more projects launched: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo.
This strong performance in November pushed total developer sales for the first 11 months of 2024 to 6,344 units, surpassing the 6,421 units sold in the entire year of 2023. According to Yip, this reflects the strength and resilience of the property market and underscores the enduring appeal of property as an asset for wealth creation and preservation.
Chia Siew Chuin, JLL’s head of residential research, notes that the sluggish market performance in the first three quarters of 2024 created an unconventional year-end scenario. “Developers, who had repeatedly postponed launches due to economic uncertainties and hopes for improved conditions, finally rolled out projects in November.”
This change from caution to action was prompted by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024, according to Chia. “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.”
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There is speculation about the possibility of further property cooling measures, given the high sales in November. However, Chia believes that any intervention is unlikely unless there is sustained sales momentum in the first quarter of 2025 and a simultaneous sharp increase in property prices compared to GDP growth.
“The November sales figures are impressive, but they do not provide enough evidence to predict cooling measures,” Chia says. “The market exuberance was mainly driven by a year-end rush to launch projects.” Therefore, any measures will depend on whether there are clear signs of persistent market overheating.