The November sales of developers soared to 2,557 units – the most since March 2013 when 2793 units were sold.
According to the Urban Redevelopment Authority, data was released on December 16 this was an increase of 246.5 percentage increase over the October sale and 226 percent higher than a year before.
Including executive condominiums (ECs) as well as new home sales increased 277.4 per cent to 2,891 units from 766 units sold in October.
After months of lukewarm new launches 2871 units, which excludes ECs, were released in November. It was 437 percent more than the month before and 196 percent higher from the previous year.
A total of 504 new ECs were also offered for sale.
Home buyers returned in force when interest rates fell between September and November.
Six residential launches – 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 the total sales of new homes in November.
Together, new residential sales between October and November were 3,295 units. This was higher than the 3,049 units sold during the first nine months of 2024.
With the 6,344 new homes developers sold during the first eleven months of this year, 2024’s sales are set to beat 2023’s sales, which were the lowest of 15 years with 6,421 units, which excludes ECs.
In the EC segment, sales surged to 334 units in November, up from a mere 28 units in the month of October, because of the new launch Novo Place, which sold 289 units at a median price of $1,654 sq ft (psf).
The burst in home buyer activity with six new launches, as well as the near selling out of Emerald of Katong, changed the mood.
The most popular condominium for November was Emerald of Katong which is a city-fringed development. Emerald of Katong sold 840 units of its 846 units at a median price of $2.627 psf. Another project that is city-fringed, Nava, sold 382 at a price median of $2.445 per square foot.
In the suburbs, Chuan Park was the most popular by a long stretch with 721 units sold at a median price of $2,586 psf due to pent-up demand coming from HDB upgraders as well as private home downgraders, as well as the absence of new launch supply in the area for over 10 years.
The anticipated increase in fourth-quarter new home sales could result in a 3 per cent to 4 per cent rise in the overall private price index by 2024.
Although November was a strong month for sales, one swallow doesn’t necessarily mean it’s summer. This impressive performance is not likely to be repeated in the near future.
In November, launches in central locations with greater entry costs have a slower take-up rates. December is expected to be a slow month due to the busy holiday season.
If the demand for the product is expected to persist into the New Year after the holiday period.
The geopolitical tensions that may arise from increased uncertainty in the Middle East, the current impasse in Ukraine and the possibility of more tariffs or protectionist policies by the US under a new Trump administration could negatively impact global business and have a negative impact on trade as well as the world economy.
If this impacts on Singapore’s job market as well as economy, then home buyers may be forced to put off purchasing a home until 2024.
The reduction in interest rates could slow down in 2025 because of policy changes proposed by a Trump administration that is focused on tax cuts and tariffs on a large scale. These policies could increase inflationary risks which would undermine rate-cutting initiatives.
Collectively, these market forces should diminish the risk of the local market for property overheating and mitigate the need for additional cooling measures.
The new home sales market is expected to regain growth in January 2025, driven by new launches, such as the 777-unit The Orie located in Toa Payoh, which has not seen an update since Gem Residences in 2016.
The remarkable performances of Chuan Park and the Emerald of Katong also underscores the appeal of projects of this scale that provide comprehensive facilities. This trend is likely to bode well for future developments of a large scale.