By the editors
The property market in 2024 had two distinct phases that showed vastly different outcomes. In the first half of the year, sales were slow and boutique developments were the focus, resulting in the lowest number of units launched since 1H1996, as reported by Huttons Data Analytics. The number of units sold reflected this trend, with only 1,889 units sold, the lowest since 1996. However, the launch of the 533-unit Lentor Mansion in March proved to be an exception, with a 75% take-up rate during its launch weekend. Despite this, most project launches in 1H2024 had lacklustre sales compared to 2023.
According to Mark Yip, CEO of Huttons Asia, market sentiment was cautious and hesitant, possibly due to uncertainties in the job market and persistently high interest rates. Buyers were likely waiting for highly anticipated project launches in the later half of the year, such as Chuan Park and Emerald of Katong.
In order to stay informed of the latest property launches and transaction prices, you can search for new launches. Yip also noted that the launch of the 276-unit freehold Kassia on Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month.
The first project launched after the Lunar Seventh Month was the 158-unit 8@BT at Bukit Timah Link. Over the weekend of Sept 21–22, 53% of its units were snapped up at an average price of $2,719 psf. This sparked an increase in sales in 3Q2024, with a 60% quarter-on-quarter leap, according to Huttons. This shift in sentiment is attributed to the 50-basis point interest rate cut by the US Federal Reserve in September.
In November, the market saw even more robust sales activity as more than 50% of the 226 units at Meyer Blue were privately sold on October 5. These units were transacted at an average price of $3,260 psf, setting a new benchmark for the prime District 15 area on the East Coast. Additionally, the 348-unit Norwood Grand in Woodlands achieved multiple milestones with an 84% take-up rate during its launch weekend in October, making it the best-selling project in terms of percentage of sales as of October. This was also the first time a project in Woodlands surpassed the $2,000 psf threshold with an average price of $2,067 psf.
The strong performance of Norwood Grand, the first new private residential project launched in Woodlands in 12 years, is a clear signal of growing buyer demand and confidence, according to Yip. This triggered a wave of new project launches in November, with a record-breaking six projects comprising 3,551 units launched over the course of 10 days.
These launches began with the 367-unit The Collective at One Sophia on Nov 6, followed by the 366-unit Union Square Residences at Havelock Road on Nov 9. Then on Nov 10, the 916-unit Chuan Park was launched, followed by three projects launched in tandem over the weekend of Nov 15-16: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC). This resulted in a 2,557-unit surge in developer sales for November, the highest figure since March 2013. This momentum pushed total developer sales for the first 11 months of 2024 to 6,344 units, and it is expected to surpass 6,500 units by year-end, exceeding the 6,421 units sold in 2023.
According to Yip, this demonstrates the strength and resilience of the property market and the enduring appeal of property as an asset for wealth creation and preservation.
Chia Siew Chuin, JLL’s head of residential research, says that the private residential market’s sluggish performance in the first three quarters of 2024 resulted in an atypical year-end scenario. Developers, who had repeatedly delayed their launches due to economic uncertainties and hopes for improved conditions, finally debuted their projects in November.
This decisive shift from caution to action was driven by the approaching festive lull and improved market sentiment since the third quarter of 2024. As a result, November became an unusually vibrant period for property launches, defying the typical seasonal slowdown and creating a dynamic market environment.
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Although the impressive sales figures in November may lead one to speculate about the possibility of further cooling measures, Chia notes that this market exuberance was primarily due to a rush to launch projects before the year-end. She believes that regulatory intervention is unlikely unless two key factors emerge: sustained sales momentum into the first quarter of 2025, and a sharp increase in property prices outpacing GDP growth.
Chia believes that despite close monitoring by authorities, new measures are unlikely to be implemented unless clear signs of persistent market overheating occur.