2 bdrm + study unit at newly previewed Kassia at Flora Drive going for $1.38 millionRead the repurposed article below:
In 2024, the property market saw two distinct halves. The first half was marked by sluggish activity, with boutique developments taking the lead and the lowest number of units being launched for sale since 1H1996, according to Huttons Data Analytics. In line with this trend, sales volume also remained low with only 1,889 units being sold, the lowest since 1996.
However, there were a few exceptions, such as the 533-unit Lentor Mansion, which enjoyed a take-up rate of 75% during its launch weekend in March. Most other projects launched in 1H2024 saw lacklustre sales compared to the previous year.
According to Mark Yip, CEO of Huttons Asia, “market sentiment was tentative and cautious”. This could be attributed to uncertainties in the job market and high interest rates. Buyers were likely holding back, waiting for the highly anticipated project launches later in the year, such as Chuan Park and Emerald of Katong.
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 followed by the launch of the 158-unit 8@BT at Bukit Timah Link in September, which saw 53% of its units being snapped up at an average price of $2,719 psf.
In 3Q2024, new home sales increased by 60% quarter-on-quarter, according to Huttons, indicating a shift in sentiment. Some attribute this to the 50-basis point interest rate cut by the US Federal Reserve in September. More evidence of this increased sales momentum emerged in October, when over 50% of the 226 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 enclave on the East Coast.
It is crucial to carefully evaluate the potential rental yield when considering an investment in a condominium. Rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, condo rental yields can vary greatly based on factors such as location, property condition, and market demand. Generally, areas that have high rental demand, such as those near business districts or educational institutions, tend to offer better rental yields. It is beneficial to conduct thorough market research and seek guidance from real estate agents to gain valuable insights into the rental potential of a particular condo. Additionally, investors may also want to consider new condo launches as they may offer attractive rental opportunities.
The 348-unit Norwood Grand in Woodlands also achieved several milestones. During its launch weekend in October, it saw a take-up rate of 84%, making it the best-selling project in terms of percentage of units sold as of October. The average price of units sold was $2,067 psf, marking the first time a project in Woodlands surpassed the $2,000 psf threshold.
Norwood Grand was the first new private residential project launched in Woodlands in 12 years and its strong performance was seen as a clear signal of growing buyer confidence and demand, according to Huttons’ Yip. This triggered a wave of activity in November, with a record-breaking six new projects comprising 3,551 units being unleashed over a period of 10 days.
The streak began on Nov 6 with the launch of the 367-unit The Collective at One Sophia, followed by the 366-unit Union Square Residences at Havelock Road on Nov 9. Sales momentum continued to build up with the launch of the 916-unit Chuan Park on Nov 10, and it surged over the weekend of Nov 15-16 with three projects launched in concert: the 846-unit Emerald of Katong, the 552-unit Nava Grove, and the 504-unit Novo Place executive condo (EC).
As a result, developer sales in November soared to 2,557 units – the highest figure since March 2013, when 3,489 units were launched and 2,793 were sold, according to Huttons Data Analytics. This strong performance pushed total developer sales for the first 11 months of 2024 to 6,344 units. 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,” says Huttons’ Yip. “It underscores the enduring appeal of property as an asset for wealth creation and preservation.”
Chia Siew Chuin, JLL’s head of residential research, notes that the sluggish performance of the private residential market in the first three quarters of 2024 created an atypical year-end scenario. “Developers, who had repeatedly postponed launches due to economic uncertainties and hopes for improved conditions, finally rolled out projects in November.”
Chia says that this decisive shift from caution to action was fueled by the approaching year-end festive lull and improved market sentiment since the third quarter of 2024. “The surge in activity has transformed November into an unusually vibrant period for property launches, defying the typical seasonal slowdown and creating a dynamic market environment.”
There is now speculation about the possibility of further property cooling measures, given the uncharacteristically high November sales. However, Chia believes that “unlikely” any intervention will depend on two factors: sustained sales momentum into the first quarter of 2025 and a concurrent 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.