Developers have sold a total of 2,557 new private homes in November, excluding executive condos (ECs), based on data released by URA on December 16. This indicates a significant increase of 246.5% from the 738 units sold in October, and a remarkable growth of 226% compared to the number of units sold in November of 2023.
According to Christine Sun, chief researcher and strategist at OrangeTee Group, this surge marks the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold. Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is also the first time in over seven years that new home sales have surpassed the 2,000-unit mark in a single month.
The impressive figure for November was driven by an “unprecedented” number of project launches during the month, explains Lee Sze Teck, senior director of data analytics at Huttons Asia. A total of five private residential projects were launched, including the 916-unit Chuan Park, the 846-unit Emerald of Katong, the 552-unit Nava Grove, the 367-unit The Collective at One Sophia, and the 366-unit Union Square Residences.
On top of that, the 504-unit Novo Place EC also commenced sales in November. When including ECs in the figure, new home sales jumped by 277% compared to the previous month and 226% from the same period last year, reaching a total of 2,891 units in November.
Based on the data from URA, developers have sold an estimated 6,344 units as of November, which is only marginally higher than the 6,317 units sold in the first eleven months of 2023. This is despite the fact that developers launched 6,627 units for sale during the same period, which is lower than the 7,515 units launched in the first 11 months of 2023.
Top-performing projects
Emerald of Katong was the top-performing project in November, selling 840 units (or 99%) with a median price of $2,627 psf. Located on Jalan Tembusu in the Rest of Central Region (RCR), the 846-unit development by Sim Lian Group has become the best-selling project in 2024 in terms of both units and percentage.
“Buyers were attracted to the project’s excellent design and offerings, particularly those who want to live near the East Coast. The lower interest rates also made mortgages more accessible, providing further incentives for buyers to invest in this city-fringe development,” observes OrangeTee’s Sun.
Chuan Park, a 99-year leasehold condo by Kingsford Group, was the second best-selling project in November, with 721 units (or 79%) sold at a median price of $2,586 psf. Located on Lorong Chuan, adjacent to Lorong Chuan MRT Station in the Outside Central Region (OCR), the 916-unit development takes the title of the second-best-selling project in terms of units.
The third best-selling project in November in terms of units sold was Nava Grove, located at Pine Grove in District 21. The 99-year leasehold condo, developed by MCL Land and Sinarmas Land, sold 382 units (or 69%) at a median price of $2,445 psf.
According to Sun, the strong sales performance among the new launches can be attributed to pent-up demand and improved buyer sentiment following the September interest rate cut. “As a result, many buyers were eager to take advantage of attractive deals offered by several prominent projects launched simultaneously,” she adds.
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Huttons’ Lee further explains that buying momentum has been steadily building up since the last quarter, when project launches such as the 158-unit 8@BT and the 348-unit Norwood Grand received a robust response. There were also instances where buyers, who missed out on their preferred unit in a particular project, quickly committed to a unit in another new or existing project.
In November, EdgeProp Singapore reported that the launch of Emerald of Katong has had a ripple effect on neighboring projects in District 15. Developments such as Tembusu Grand and The Continuum have seen an increase in take-up rates.
Huttons’ Lee predicts that December sales will be more subdued due to the ongoing school holidays and festive season. He expects new private home sales to reach around 200 to 250 units, bringing the total developer sales for the year to approximately 6,500 units. This is slightly more than the number of units sold in 2023. Moreover, he projects price growth to be around 5%, moderating from the 6.8% registered in 2023.
Looking ahead to 2025, Sandrasegeran of SRI anticipates a rebound in new home sales in January with the launch of The Orie by City Developments. Located on Lorong 1 Toa Payoh, the 777-unit development is the first project to be launched in the area since Gem Residences in 2016. The extended gap between launches is expected to generate pent-up demand, particularly from buyers looking to live near Braddell MRT station.
Other developments that are expected to launch in the first quarter of 2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Aurelle of Tampines EC.
Sun of OrangeTee believes that the recent surge in sales is temporary and that the subdued demand for new homes will continue in 2024 due to the lack of significant private project launches. She notes that developer sales during the first three quarters of 2024 were the lowest recorded since 2004, the year when URA data became available.
On the other hand, Huttons’ Lee is “cautiously optimistic” about a better performance in the new sale market in 2025. He expects that some of the unsatiated demand in 2024 will carry over to the launches in the first quarter of 2025. Lee projects new private home sales to rebound to between 7,000 and 8,000 units in 2025, while prices are estimated to grow between 4% and 7%.