According to data from the Urban Redevelopment Authority (URA) published on Dec 16, developers sold a total of 2,557 new private homes in November, excluding executive condos (ECs). This marks a 246.5% increase compared to the 738 units sold in October and a 226% surge from the number of units sold in November 2023.
Christine Sun, chief researcher and strategist at OrangeTee Group, notes that this sharp rise in sales represents the highest monthly developer sales figure since March 2013, when 2,793 units (excluding ECs) were sold. Meanwhile, Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is also the first time since March 2013 that new home sales have surpassed the 2,000-unit mark in a single month.
The surge in November developer sales can be attributed to the “unprecedented” number of project launches that occurred during the month, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. Five private residential projects were launched in November, 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 private homes in November, representing a 438% surge compared to the previous month and a 196% increase from November 2023. Additionally, the 504-unit Novo Place EC also commenced sales during the month, bringing the total number of new homes sold in November to 2,891, a 277% increase month-on-month and a 226% increase year-on-year.
As of November, developers have sold an estimated 6,344 units, slightly more than the 6,317 units sold during the same period in 2023. This can be attributed to the 6,627 units launched for sale by developers in the first 11 months of 2024, as compared to 7,515 units launched during the same period in 2023.
Emerald of Katong, a 846-unit development by Sim Lian Group, was the best-selling project in November, with 840 units (99% of total units) sold at a median price of $2,627 psf. This makes the project the top-selling development by units and percentage in 2024, according to Lee. Sun of OrangeTee notes that buyers were attracted to the project’s design and offerings, especially those seeking to live near the East Coast. The recent interest rate cuts may have also incentivized buyers to invest in this city-fringe development, she adds.
Coming in second was Kingsford Group’s Chuan Park, which sold 721 units (79%) at a median price of $2,586 psf. Located on Lorong Chua near the Lorong Chuan MRT Station, the development is situated in the Outside Central Region (OCR). Nava Grove, developed by MCL Land and Sinarmas Land and located at Pine Grove in District 21, was the third best-selling project in terms of units sold, with 382 units (69% of total units) sold at a median price of $2,445 psf.
According to Sun, the strong sales performance among the new launches can be attributed to pent-up demand and improved buyer sentiment following the interest rate cuts in September. As a result, many buyers were eager to take advantage of attractive deals as multiple prominent projects were launched simultaneously, she observes. Lee of Huttons adds that demand has been steadily increasing since the last quarter, with the successful launches of projects such as 8@BT (158 units) and Norwood Grand (348 units). This demand has also spread to the wider market, as buyers who missed out on their desired unit in a specific project quickly committed to a unit in another new or existing development.
According to EdgeProp Singapore, the launch of Emerald of Katong has had a ripple effect on neighboring projects in District 15, including Tembusu Grand and The Continuum, both of which have seen an increase in take-up. The Continuum has emerged as the top beneficiary of the Emerald of Katong launch, with a reported profit of $3.5 million.
Looking ahead, Lee of Huttons expects a more subdued December due to the school holidays and the festive season, with the lack of planned launches causing new private home sales to drop to around 200 to 250 units. This would bring total developer sales for the year to about 6,500 units, a slight increase from 2023. In terms of prices, Lee predicts that full-year price growth will slow down to around 5%, down from the 6.8% growth seen in 2023.
Moving into 2025, Sandrasegeran of SRI expects new home sales to regain momentum in January with the launch of The Orie (777 units) by City Developments on Lorong 1 Toa Payoh. As the area has not seen a new project launch since Gem Residences in 2016, this extended gap is likely to generate pent-up demand, which will continue to drive buyer interest in this well-established estate within close proximity to Braddell MRT station, he says.
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Other projects expected to be launched in the first quarter of 2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Aurelle of Tampines EC. Sun of OrangeTee believes that the recent surge in sales is a temporary phenomenon, noting that new home demand has been low throughout 2024 due to the lack of significant private project launches. Developer sales during the first three quarters of 2024 amounted to the lowest Q1 to Q3 figures recorded since 2004, OrangeTee adds.
However, Lee of Huttons remains cautiously optimistic about a better performance in the new sale market in 2025. He believes that some of the unsatisfied demand in 2024 may spill over into the 1Q2025 launches, resulting in a rebound in new private home sales to between 7,000 and 8,000 units in 2025. Additionally, prices are expected to grow by 4% to 7% during the year.