Kassia – the only new launch project in the East outside the city fringe – to preview July 18Read the latest Property Zone articlesRevisit past Property Zone articles
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The real estate market in 2024 was marked by two distinct halves. The first half was slow, with a focus on boutique developments and the lowest number of units launched for sale since 1H1996, according to data from Huttons Analytics. This trend was reflected in sales volume as well, with only 1,889 units sold – the lowest figure since 1996.
One exception to this trend was the launch of Lentor Mansion in March, which saw a 75% take-up rate. However, most other project launches in the first half of 2024 saw lackluster sales compared to the previous year. According to Mark Yip, CEO of Huttons Asia, this could be due to uncertainties in the job market and high interest rates, leading buyers to hold back and wait for more highly anticipated projects later in the year, such as Chuan Park and Emerald of Katong.
Being on the lookout for new launches is a good idea, to keep track of prices and unit availability.
The launch of Kassia in late July, a freehold development with 276 units, marked a turning point in the market. It achieved a 52% take-up rate and set the stage for a surge in sales after the Lunar Seventh Month. This was followed by the launch of 8@BT at Bukit Timah Link in September, where 53% of units were sold at an average price of $2,719 psf.
In the third quarter of 2024, new home sales increased by 60% compared to the previous quarter, as reported by Huttons. This shift in sentiment was attributed by some to the 50-basis point interest rate cut by the US Federal Reserve in September.
Further evidence of the growing sales momentum came in October, when over 50% of units at Meyer Blue were sold in private sales at an average price of $3,260 psf, setting a new benchmark for the prime District 15 area on the East Coast. Another notable project was Norwood Grand in Woodlands, with 84% of its units sold over its launch weekend in October. This marked the first time a Woodlands development surpassed the $2,000 psf mark, with units transacted at an average price of $2,067 psf.
The launch of Norwood Grand, the first in Woodlands in 12 years, was a strong indication of growing buyer confidence and demand, according to Yip. This momentum continued into November, with a record-breaking six projects launched over 10 days, comprising a total of 3,551 units.
The rush of activity began with the launch of The Collective at One Sophia, followed by Union Square Residences at Havelock Road, Chuan Park, Emerald of Katong, Nava Grove, and Novo Place executive condo (EC). By the end of November, developer sales had reached 2,557 units – the highest figure since March 2013.
This strong performance in November pushed total developer sales for the year up to 6,344 units. It is expected that the year-end figures will surpass 6,500 units, exceeding the 6,421 units sold in 2023. This demonstrates the resilience and strength of the property market, highlighting its role as an asset for wealth creation and preservation.
While the sluggish market performance in the first three quarters of 2024 led to an atypical year-end, with a surge in activity and sales in November, experts do not anticipate any regulatory intervention at this time. According to Chia Siew Chuin, JLL’s head of residential research, any intervention would only occur if sales momentum continues into the first quarter of 2025 and property prices increase sharply, outpacing GDP growth. However, she believes that despite close monitoring by authorities, new measures are unlikely to be implemented unless there are clear signs of persistent market overheating.
In conclusion, the property market in 2024 saw a slow start, but strong sales momentum in the latter half of the year. Despite uncertainties and caution in the first half of the year, the market picked up in the second half, with developers launching projects in a year-end rush. With the year-end figures expected to surpass the previous year, the property market has proven its resilience and enduring appeal as an asset for wealth creation and preservation.