In November, URA data revealed that developers had sold a total of 2,557 new private homes, excluding executive condos (ECs). This marked a surge of 246.5% from the 738 units sold in October, and was a 226% increase from November 2023.
According to Christine Sun, chief researcher and strategist at OrangeTee Group, this was the highest monthly developer sales recorded since March 2013, when 2,793 units were sold, excluding ECs. Meanwhile, Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), noted that this was the first time in over seven years that new home sales exceeded the 2,000-unit threshold in a single month.
The November figure was largely driven by the launch of five new private residential projects, including Chuan Park (916 units), Emerald of Katong (846 units), Nava Grove (552 units), The Collective at One Sophia (367 units), and Union Square Residences (366 units). In total, developers launched 2,871 new homes in November – a staggering 438% jump from the previous month, and a 196% increase from the same period last year.
Apart from these private residential launches, the 504-unit Novo Place EC also commenced sales in November. Taking this into account, the total number of new home sales in November reached 2,891 units, which was a 277% increase from October, and a 226% increase from November 2023.
In the first 11 months of 2024, developers have launched a total of 6,627 units for sale, and sold an estimated 6,344 units. While this is marginally higher than the 6,317 units sold in the same period last year, it does not match the 7,515 units launched in the first 11 months of 2023.
Emerald of Katong was the best-performing project in November, with 840 units (99%) sold at a median price of $2,627 psf. According to Lee Sze Teck, senior director of data analytics at Huttons Asia, this makes the 99-year leasehold development the top-selling project by units and percentage for 2024. Sun believes that the project’s “excellent design and offerings” have appealed to buyers, particularly those looking to live near the East Coast. The recent interest rate cuts have also made mortgages more affordable, further incentivizing buyers to invest in this city-fringe project.
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The second best-selling project in November was Chuan Park, with 721 units (79%) sold at a median price of $2,586 psf. This 99-year leasehold condo, located in Lorong Chuan, is situated in the Outside Central Region (OCR).
Nava Grove, a 99-year leasehold development located in District 21, was the third top-selling project in November, with 382 units (69%) sold at a median price of $2,445 psf.
Sun believes that the spike in sales for these new launches can be attributed to pent-up demand and improved buyer sentiment following the September interest rate cuts. Lee adds that the buying momentum has been on the rise since the previous quarter, when project launches such as the 158-unit 8@BT and the 348-unit Norwood Grand saw a strong response. He also observes that demand has been funnelled to the wider market, as buyers who missed out on their choice unit in a particular project quickly committed to units in other new or existing projects.
Last month, EdgeProp reported that the launch of Emerald of Katong has caused a ripple effect on neighbouring projects in District 15, with developments like Tembusu Grand and The Continuum recording an uptick in take-up. As of November, The Continuum has emerged as the top beneficiary of the launch of Emerald of Katong.
Looking ahead, Lee believes that new private home sales will fall to about 200 to 250 units in December, due to the school holidays and the festive season. This will bring the full-year figure to around 6,500 units, slightly higher than the number recorded in 2023. He also predicts that full-year price growth will moderate to around 5%, from the 6.8% increase registered in 2023.
In January 2025, new private home sales are expected to pick up momentum again with the launch of The Orie (777 units) by City Developments, situated in Lorong 1 Toa Payoh. Sandrasegeran believes that this development, which will be the first in the area since Gem Residences in 2016, will generate pent-up demand, and attract buyers who are drawn to its closeness to Braddell MRT station.
Other projects slated for launch in the first quarter of 2025 include Bagnall Haus (113 units), Aurea (186 units), and Aurelle of Tampines EC (760 units).
Sun opines that the recent surge in sales figures is a temporary phenomenon, and that 2024 has seen subdued demand for new homes due to the lack of significant private project launches. In fact, the number of new home sales in the first three quarters of 2024 is the lowest since data from URA became available in 2004.
However, Lee remains “cautiously optimistic” about the new sales market, and expects buying momentum to pick up in 2025. With some demand still unmet in 2024, he believes it will flow over to the launches in the first quarter next year. He predicts that new private home sales will range between 7,000 and 8,000 units in 2025, with prices rising between 4% and 7%.