In November, Singapore's new home sales increased by over threefold as a result of th

In November, Singapore's new home sales increased by over threefold as a result of the introduction of six projects to the market

This is the most significant sales figure in more than a decade, as 2,557 private properties were sold.

December 16, 2024

CONDOsingapore.com

In November, Singapore's private property market experienced a resurgence as a result of rising consumer sentiment, robust pent-up demand, and consecutive project launches.

According to data released by the Urban Redevelopment Authority on Monday (Dec 16), developers sold 2,557 private residences in November, which is more than three times the number of units sold a year prior, which was 784.

The most recent sales figure, which excludes executive condominiums (ECs), is 246.5 percent higher than the 738 units sold in October of this year.

According to Christine Sun, OrangeTee Group's principal researcher and strategist, the sales figure was also the highest since March 2013, when 2,793 units were sold.

In November, 2,891 units were sold, and 3,375 units were launched, including ECs. This is in contrast to the 800 units sold and 970 units launched in the same month in 2023. In contrast, 534 units were introduced and 766 units were sold in October 2024.

In October and November, developers sold a total of 3,295 condominiums and private apartments, surpassing the previous nine months' sales of 3,049 units, according to Wong Siew Ying, PropNex research chief.

In total, approximately 6,344 new residences were sold between January and November. Wong stated that this is on course to surpass the 6,421 units of private property sales reported for the entirety of 2023, which were the lowest in 15 years.

Leonard Tay, the director of research at Knight Frank, observed that Singaporean purchasers had been "watching and waiting" in a subdued market with minimal activity for the majority of the year before emerging in October and November.

Lee Sze Teck, Huttons Asia's senior director of data analytics, attributed this to the unprecedented introduction of six initiatives in November, with several of them occurring over the same weekend.

Five of the six structures were condominiums, while one was an EC.

Lee mentioned that the Emerald of Katong, located along Jalan Tembusu, has sold nearly all of its 846 units, and the enormous 916-unit Chuan Park, which has sold almost 80% of its units, were notable examples.

The two projects were also the most popular in November, with median prices of S$2,627 per square foot (psf) for Emerald of Katong and S$2,586 psf for Chuan Park.

The six new projects were introduced at an opportune moment, according to Mohan Sandrasegeran, SRI's director of research and data analytics. Sandrasegeran noted that the reduction of interest rates and the expanding consumer interest coincided with the favourable borrowing conditions. Since September, the US Federal Reserve has reduced rates twice, and analysts anticipate that there will be another reduction this month.

"As a result, numerous buyers were eager to capitalise on the attractive deals that were introduced concurrently by numerous prominent projects," stated Sun of OrangeTee.

Marcus Chu, the chief executive of ERA, stated that developers were in a hurry to initiate their projects as soon as they received their sales licences and in anticipation of the festive period in December and January.

Sandrasegeran stated that the market activity was exceptional as a result of the convergence of these factors, which included a robust pipeline of "well-positioned developments."

Analysts anticipate that the total number of new home sales in 2024 will be between 6,500 and 7,000 units, excluding ECs. This figure is expected to surpass the 2023 total. Additionally, they anticipate that prices will increase by up to 5%, which is a decrease from the 6.8% increase observed in the previous year.

One-off

Nevertheless, Wong of PropNex issued a warning that such an exceptional performance may not be replicated in the immediate future.

"The private housing market's unfettered resurgence is not automatically implied by the robust sales in November; they must be considered in context," she stated. "In general, buyers continue to exercise caution and maintain a long-term perspective on their property acquisitions."

In November, the take-up rate of private housing and ECs, which measures primary residential demand, was 85.7%, according to Nicholas Mak, chief research officer at Mogul.sg. This is the second-poorest performance of the year. In January, the lowest recorded percentage was 65.8%.

According to Mak, the housing demand in November could be considered subpar in comparison to the 105.7 percent take-up rate from January to October.

Consequently, market observers are cautiously optimistic about the forthcoming year and anticipate a modest increase in new home sales, with the potential for 7,000 to 8,000 units to be sold.

Lee of Huttons anticipates that some of the unmet demand from 2024 may be transferred to the launches in the first quarter of the following year.

Also, Sun anticipates an increase in the number of private home launches in 2025, as a result of the government's consistent allocation of land for residential development.

For example, it is anticipated that the government's land sales programme in the first half of the following year will result in the construction of approximately 5,030 new private residences, which will include 980 EC units.

"The supply increase can assist in reducing abrupt fluctuations in demand by allowing potential buyers to evaluate their options before making a private property investment," stated Sun. "This has the potential to enhance market stability in the long term."

Furthermore, Knight Frank's Tay anticipates that the forthcoming year will be marked by increased volatility, as a result of the ongoing impasse in Ukraine and the escalating geopolitical tensions in regions such as the Middle East.

"A second (Donald) Trump presidency, which would include warning shots of additional tariffs and protectionist policies, could have a global impact on businesses and the flow of trade," he continued.

"If these factors combine to impact Singapore's improving economy and job market, homebuying demand may be relegated to the background, as it was for a significant portion of 2024."