Sluggish Start 2024 Ends Decade High Home Sales Year%E2%80%99S End
The real estate market in 2024 was a tale of two halves with contrasting performances. According to Huttons Data Analytics, the first half of the year saw a sluggish market with boutique developments taking the spotlight. This led to the lowest number of units launched for sale since the first half of 1996. Sales volume also mirrored this trend, with only 1,889 units sold – the lowest number since 1996.
However, the 533-unit Lentor Mansion bucked this trend, achieving a 75% take-up rate during its launch in March. On the other hand, most other project launches in the first half of 2024 saw lackluster sales compared to the previous year.
Mark Yip, CEO of Huttons Asia, attributes this cautious market sentiment to uncertainties in the job market and persistently high interest rates. Buyers were holding back, waiting for more highly anticipated project launches later in the year, such as Chuan Park and Emerald of Katong.
Potential buyers can search for the latest new launches to find out transaction prices and available units.
Yip notes that the launch of the 276-unit freehold Kassia on Flora Drive in late July, which achieved a 52% take-up rate, set the stage for strong sales momentum following the Lunar Seventh Month. This was the first project launched after the Lunar Seventh Month, indicating a boost in confidence and demand.
The positive momentum continued in the third quarter of 2024, with new home sales leaping 60% quarter-over-quarter, according to Huttons. This shift in sentiment can be attributed to the 50-basis point interest rate cut by the US Federal Reserve in September.
In October, the 348-unit Norwood Grand in Woodlands also achieved multiple milestones. Over the weekend of October 19-20, it saw a take-up rate of 84%, making it the best-selling project in terms of percentage of sales as of October. Furthermore, the average price of units sold was $2,067 psf, making it the first project in Woodlands to surpass the $2,000 psf threshold.
According to Chia Siew Chuin, JLL’s head of residential research, the sluggish performance of the private residential market in the first three quarters of 2024 led to an atypical year-end scenario. This prompted developers, who had postponed launches due to economic uncertainties, to finally roll out projects in November.
This decisive shift from caution to action was also fueled by improved market sentiment since the third quarter of 2024 and the approaching year-end festive lull. Chia says this surge in activity has created an unusually vibrant period for property launches, defying the typical seasonal slowdown and creating a dynamic market environment.
There is speculation about the possibility of further property cooling measures, given the uncharacteristically high November sales. However, Chia believes that regulatory intervention is “unlikely” at this point. Any intervention would depend on sustained sales momentum into the first quarter of 2025 and a sharp increase in property prices outpacing GDP growth.
Despite close monitoring by authorities, new measures are likely to remain on hold unless clear signs of persistent market overheating emerge, Chia adds. In terms of sales, the year-end figures are expected to surpass 6,500 units, exceeding the 6,421 units sold in 2023. This reflects the strength and resilience of the property market, highlighting its enduring appeal as an asset for wealth creation and preservation.
Potential buyers can compare prices and listings for Kassia, a condominium property, and ask Buddy for more information. The project summary and 2-bedroom floor plans for Kassia are also available, along with the site plan and diagrammatic chart.
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