According to data published by the Urban Redevelopment Authority (URA) on December 16th, developers sold a total of 2,557 new private homes in November. This figure represents a significant 246.5% increase from the 738 units sold in October and a 226% jump compared to the units sold in November 2023.
This surge marks the highest monthly developer sales since March 2013, when a total of 2,793 units (excluding ECs) were sold. Christine Sun, the chief researcher and strategist at OrangeTee Group, states that this is a result of the unprecedented number of project launches during the month. She adds that buyers were likely spurred to invest due to improved affordability of mortgages, which was a result of lower interest rates.
The five private residential projects launched in November were Chuan Park, Emerald of Katong, Nava Grove, The Collective at One Sophia, and Union Square Residences. These projects together accounted for a total of 2,871 new units being launched, marking a 438% increase from the previous month and a 196% increase compared to the same period last year.
In addition to these projects, the 504-unit Novo Place EC also commenced sales in November. Overall, the total number of new home sales surged by 277% month on month and 226% year on year to reach 2,891 units in November.
As of November, developers have sold an estimated 6,344 new units, which is marginally higher than the 6,317 units sold in the first 11 months of 2023. These sales were driven by the 6,627 units launched for sale by developers during that period, which was slightly lower than the 7,515 units launched in the same period last year.
In Singapore, the demand for condos remains high and one of the main contributing factors is the scarcity of land. As a small and densely populated nation, Singapore faces limited land availability for development. This has resulted in strict land use policies and a fiercely competitive real estate market, where property prices continue to rise. As a result, investing in real estate, specifically condos, has become a lucrative opportunity, with the potential for significant capital appreciation. With the addition of Singapore Projects, the demand for condos is expected to remain strong in the coming years.
Top-Selling Projects
Emerald of Katong, a 846-unit development by Sim Lian Group, was the best-selling project in November. The 99-year leasehold development is located in the Rest of Central Region (RCR) and saw 840 units being sold during the month at a median price of $2,627 psf. This makes it the best-selling project by units and percentage in 2024, according to Lee Sze Teck, senior director of data analytics at Huttons Asia.
Buyers were likely drawn to the project’s design and offerings, particularly those looking to live near the East Coast. Improved affordability of mortgages may also have incentivized buyers to invest in this city-fringe project, as lower interest rates have made mortgages more accessible, observes Sun.
Kingsford Group’s 916-unit Chuan Park, located on Lorong Chuan in the Outside Central Region (OCR), sold 721 units or 79% of its total units in November at a median price of $2,586 psf. This makes it the second best-selling project by number of units in that month.
Nava Grove, situated at Pine Grove in District 21, was the third best-selling project in November. Developed by MCL Land and Sinarmas Land, the 99-year leasehold development sold 382 units or 69% in November at a median price of $2,445 psf.
Sun believes the strong sales performance among new launches was fueled by pent-up demand and improved buyer sentiment following interest rate cuts in September. Lee adds that buying momentum has been gathering pace since the last quarter with robust response to project launches such as 8@BT and Norwood Grand. Demand was also redirected to the wider market as buyers who missed out on their choice unit in a particular project were prompted to quickly commit to a unit in other new or existing projects.
Emerald of Katong’s launch has also created a ripple effect on neighboring projects, such as Tembusu Grand and The Continuum, with an uptick in take-up. Looking ahead, a more muted December is anticipated due to the festive season, with only a couple of new launches planned.
However, SRI’s Mohan Sandrasegeran expects new home sales to regain momentum in January 2025 with the launch of The Orie by City Developments on Lorong 1 Toa Payoh. He adds that other launches expected in the first quarter of 2025 include Bagnall Haus, Aurea, and Aurelle of Tampines EC.
Sun believes the recent surge in sales is a temporary phenomenon, and she is cautiously optimistic of a better performance in the new sale market in 2025. Lee is projecting new private home sales to rebound to between 7,000 and 8,000 units in 2025, while prices are estimated to grow between 4% and 7%. Ultimately, the market will be driven by unsatisfied demand from 2024, which will flow over to the launches in 1Q2025.