Huttons Asia’s Mark Yip on the impact of demographics & economy on property prices – See more at:
The property market in 2024 saw a stark contrast between the first and second half of the year. According to Huttons Data Analytics, the first half was slow, with boutique developments being the main focus and the lowest number of units launched for sale since the first half of 1996. Sales volume also reflected this trend, with only 1,889 units sold – the lowest since 1996. The exception was Lentor Mansion, a 533-unit development that achieved a 75% take-up rate during its launch weekend in March. However, most other project launches in the first half of 2024 saw lackluster sales compared to the previous year.
Huttons Asia CEO Mark Yip notes that the market sentiment was tentative and cautious, possibly due to uncertainties in the job market and high interest rates. Buyers were likely holding back, waiting for highly anticipated project launches later in the year, like Chuan Park and Emerald of Katong. To find out the latest new launches, one can search for them and check out the transaction prices and available units.
However, the launch of the 276-unit freehold Kassia at Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month. This was followed by the launch of the 158-unit 8@BT at Bukit Timah Link in September, with 53% of its units snapped up over the weekend at an average price of $2,719 psf.
In the third quarter of 2024, new home sales saw a 60% increase compared to the previous quarter, according to Huttons. This shift in sentiment is attributed to the 50-basis point interest rate cut by the US Federal Reserve in September. This was further supported by the sale of more than 50% of units at Meyer Blue in October, at an average price of $3,260 psf, setting a new benchmark for the prime District 15 enclave on the East Coast.
Norwood Grand, a 348-unit project 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, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.
Norwood Grand’s strong performance was a clear signal of growing buyer confidence and demand, according to Huttons’ Yip. This triggered a tidal wave of activity in November, with a record-breaking six new projects comprising 3,551 units unleashed over 10 days. It began with the launch of The Collective at One Sophia on November 6, followed by Union Square Residences at Havelock Road on November 9, Chuan Park on November 10, and three projects launched in concert over the weekend of November 15-16: Emerald of Katong, Nava Grove, and Novo Place executive condo (EC).
As a result, November sales figures soared to 2,557 units, the highest since March 2013. This strong performance pushed total developer sales for the first 11 months of 2024 to 6,344 units. It is expected that year-end figures will surpass 6,500 units, exceeding the 6,421 units sold in 2023. According to Huttons’ Yip, this reflects the strength and resilience of the property market and the enduring appeal of property as an asset for wealth creation and preservation.
JLL’s Head of Residential Research, Chia Siew Chuin, notes that the sluggish performance of the private residential market in the first three quarters of 2024 created an atypical 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 shift from caution to action was prompted by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024.
The speculation is that there might be further property cooling measures due to the unusually high sales in November. However, Chia feels that this is unlikely, unless there is sustained sales momentum into the first quarter of 2025 and a sharp increase in property prices surpassing GDP growth. “Despite close monitoring by authorities, new measures are likely to remain on hold unless clear signs of persistent market overheating emerge,” she added.
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