Sluggish Start 2024 Ends Decade High Home Sales Year%E2%80%99S End
Kassia, which achieved a 52% take-up rate on launch weekend in July, set the stage for strong sales momentum in 2H2024.The property market in 2024 saw a tale of two halves. The first half of the year was sluggish, with boutique developments taking center stage and the lowest number of units launched for sale since the first half of 1996, according to Huttons Data Analytics. Sales volume mirrored this trend, with just 1,889 units sold, the lowest figure since 1996, according to Huttons.The exception was Lentor Mansion, a 533-unit development that managed to achieve a 75% take-up rate during its launch weekend in March. However, most other project launches in the first half of the year saw relatively lackluster sales compared to 2023.”Market sentiment was tentative and cautious,” noted Mark Yip, CEO of Huttons Asia. He attributed this to uncertainties in the job market and persistently high interest rates, which led to buyers holding back and waiting for highly anticipated project launches later in the year, such as Chuan Park and Emerald of Katong.
Market experts observed that the property market’s momentum started to shift in the second half of the year. 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 following the Lunar Seventh Month.
Subsequently, the 158-unit 8@BT at Bukit Timah Link saw a 53% sales rate in a launch weekend. This trend continued with the launch of the 916-unit Chuan Park and the sale of 50% of its units during its launch weekend in November. This was also followed by the launch of other projects with high take-up rates such as the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo.
Overall, the third quarter of 2024 saw a 60% increase in new home sales, marking a shift in market sentiment that some attribute to the 50-basis point interest rate cut by the US Federal Reserve in September. This trend was further evidenced by the strong sales of the 226 units at Meyer Blue that were sold at an average price of $3,260 psf, setting a new benchmark for prime District 15 on the East Coast.
Moreover, the 348-unit Norwood Grand in Woodlands achieved a 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.
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According to Huttons’ Yip, Norwood Grand’s strong performance was a clear signal of growing buyer confidence and demand, causing a tidal wave of activity in November with a record-breaking six new projects comprising 3,551 units being launched over 10 days. Sales for November reached 2,557 units, the highest figure since March 2013.
The strong November performance pushed total developer sales for the first 11 months of 2024 to 6,344 units, which is expected to surpass the 6,421 units sold in 2023. 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.
However, speculation is now rampant about the possibility of further property cooling measures, given the uncharacteristically high November sales. But according to Chia Siew Chuin, JLL’s head of residential research, regulatory intervention is “unlikely” unless sustained sales momentum occurs in the first quarter of 2025 and property prices sharply outpace GDP growth. She also noted that the surge in activity in November was largely due to a year-end rush to launch projects and does not indicate persistent market overheating.