Cuts in interest rates, together with a record-breaking six new private residential launches that were announced in November, have sent developers’ sales surging to 2,557 units, the highest monthly total since the time 2,793 units were sold in March 2013.
According to the Urban Redevelopment Authority, data released on December 16, this represented an increase of 246.5 percentage increase over the October sale, and 226 percent more than a year ago.
In addition to executive condominiums (ECs) as well as new home sales jumped 277.4 per cent to 2,891 units from 766 units sold in October.
After a slow month of launch 2871 units (excluding ECs) were launched in November. This was 437 percent higher than the October launch, and 196 per cent more over a year ago.
A total of 504 brand new ECs were also marketed for sale.
Home buyers returned in force as interest rates dropped in September and November.
Six new residential launches including Chuan Park, Emerald of Katong, Nava Grove, The Collective at One Sophia, Union Square Residences and Novo Place EC comprised more than 82 per cent of all new home sales in November.
In October and November the amount of new houses sold totalled 3,295 units. This is more than the 3,049 units recorded in the first nine-month period of 2024.
The 6,344 new homes sold by developers in the first 11 months of 2018 are anticipated to surpass 2023 sales and were at their lowest level for 15 years. 6,421 units sold, not including the ECs.
In the EC segment, sales jumped up to 334 units during November, up from a mere 28 units in the month of October. This is due primarily to new launch Novo Place, which sold 289 units at a median price of $1,654 per sq ft (psf).
The burst in home buyer activity, with six launches, and the near selling out of Emerald of Katong, changed the mood.
The most popular condominium for November was Emerald of Katong, a city-fringed project. It sold 840 units out of 846 units for a median price of $2.627 psf. Another city-fringed development, Nava, sold 382 for a median price of $2.445 psf.
Chuan Park, the most sought-after area, was the top seller, registering 721 transactions and a median of $2,586 per sq ft. It is because of the high demand from HDB upgraders as well as private downgraders, as well as the absence of new launches in the area for more than 10 years.
The expected increase in the number of new homes sold during the fourth quarter could cause an increase of 3 to 4 percent on the index for private residential prices in 2024.
Although November was a strong month for sales, a single swallow does not necessarily make a summer. This remarkable performance is unlikely to be repeated in the near future.
Centrally located new launches with the highest entry cost have higher take-up rates in November and December. will likely not see new launches, given the holiday season’s lull.
If the market for the product will remain in the New Year following the period of holiday.
Geopolitical tensions due to greater uncertainty within the Middle East and the current impasse in Ukraine, coupled with possibly more tariffs and protectionist policies from the US in the second Trump presidency, can impact companies across the globe and, in turn can affect trade flows as well as the global economy.
If this is a negative impact on Singapore’s job market as well as economy, then buyers might be forced to delay purchasing a home until 2024.
Rate reductions in interest rates may slow down in 2025 due to the policy changes proposed by a Trump administration that emphasizes tax cuts and tariffs on a broad basis. These policies may increase inflationary risks which would undermine rate-cutting initiatives.
These market forces will reduce the likelihood of an overheating local property market as well as the need for cooling measures.
In January 2025, new house sales will increase, because of new launches like the 777-unit Orie in Toapayoh. This is the first launch in ToaPayoh since Gem Residences was launched in 2016.
The exceptional performance of Chuan Park and Emerald of Katong further highlights the attractiveness of large-scale developments that provide complete amenities. This trend is likely to be a positive sign for future large-scale developments.