Huttons’ comments on Nov 2024 developers’ sales

Launches and Sales
The property market saw an unprecedented 6 launches in Nov 2024 with several of them happening on the same weekend.

Chuan Park, Emerald of Katong, Nava Grove, Novo Place (EC), The Collective at One Sophia and Union Square Residences were launched in Nov 2024.

A total of 2,871 units (excluding EC) were launched in Nov 2024, 437.6% higher than Oct 2024 and 196.0% higher than a year ago.

On the back of major launches, developers sold 2,557 units in Nov 2024, 246.5% higher than Oct 2024 and 226.1% higher than a year ago.

The buying momentum in the market gathered pace after the Lunar Seventh Month. Project launches like 8@BT, Meyer Blue and Norwood Grand sold as high as 84% of their units on launch weekend in Sep and Oct 2024.

Buyers were drawn to several highly anticipated launches in Nov 2024. There was also a sense of FOMO among some buyers. After missing out on their choice unit in one project, buyers were quick to commit to a unit in another project launch.

The cuts in interest rates gave some buyers a higher loan amount and improved their access to the new homes market, leading to more sales.

Chuan Park sold almost 80% of its 916-units. The highly anticipated project in 14 years in Lorong Chuan sold around 70% of the 2-bedroom and 3-bedroom units and more than 60% of the 4-bedroom units.

Emerald of Katong sold more than 99% of its 846-units, making it the bestselling project by units and percentage in 2024. The larger units with either a study or flexi layout were the first to sell out.

Projects in District 15 such as Grand Dunman, Tembusu Grand and The Continuum recorded strong sales in Nov 2024 from buyers who did not manage to get a unit in Emerald of Katong. This highlights the attractiveness of District 15 among buyers.

Nava Grove sold almost 70% of its 552-units. It offers buyers a premium product at a very competitive price. Many buyers went for the premium units, showing a willingness to pay more to stay in this private residential enclave.

The Collective at One Sophia sold 62 of its 367-units. It is the bestselling project in the CCR in 2024. Buyers were attracted to the quantum of $1.14 million for a studio unit in prime District 9 in the CCR.

Union Square Residences sold 101 of its 366-units. There has not been a new launch in District 1 since Marina One Residences in 2014. There was good interest from buyers who want to stay near the CBD and the Singapore River yet close to lifestyle options and amenities like Clarke Quay, Robertson Quay and the upcoming CanningHill Square.

Purchases by Market Segments and Price Range
Boosted by the launch of The Collective at One Sophia in the CCR, the number of purchases in Nov 2024 more than tripled to 98 from Oct 2024’s 32.

Out of the 98 units sold in the CCR, 79 were bought by Singaporeans. This is the highest sales to Singaporeans since the launch of Watten House in Nov 2023.

Top Projects by Sales in Nov 2024

Source: URA, Huttons Data Analytics as of 16 Dec 2024

The top transaction by value in Nov 2024 was the sale of a unit in 32 Gilstead for $14.4 million to a PR.

Singaporeans made up 92.2% of buyers in Nov 2024 while PRs accounted for 6.8%. The proportion of purchases by Singaporeans could be the highest ever.

It shows the effectiveness of the 60% ABSD on foreigners in changing the dynamics in the residential property market. With sales in the property market increasingly driven by Singaporeans, the market is likely to be stable.

Purchases by Residential Status and Price Range in Nov 2024

Source: URA, Huttons Data Analytics as of 16 Dec 2024

Purchases by Foreigners
The number of purchases by foreigners in Nov 2024 was 25, more than double the 11 purchases by foreigners in Oct 2024. 4 of them bought properties in the CCR while the other 21 bought in the RCR and OCR.

Chuan Park sold 7 units to foreigners while Emerald of Katong sold 6.

Proportion of Purchase by Foreigners

Source: URA, Huttons Data Analytics as of 16 Dec 2024

Executive Condominiums
Sales of EC units were boosted by the launch of Novo Place in Nov 2024. Developers sold 334 units in Nov 2024, almost 12 times more than Oct 2024.

Novo Place sold more than 57% in Nov 2024, reflecting the robust demand from buyers looking for an affordable private residential lifestyle. The take-up rate would have been higher if not for the 30% quota for 2nd timers. The 30% quota set aside for second timers was fully subscribed, indicating strong upgrading demand.

Outlook
In the first 11 months of 2024, developers have launched an estimated 6,627 units for sale, 11.8% lower than the 7,515 units launched in the same period in 2023.

As of end-Nov 2024, developers have sold an estimated 6,344 units, slightly more than the 6,317 units sold in the first 11 months of 2023.

No launches are planned in Dec 2024 due to the school holidays and festive season. Sales in Dec 2024 will be lower at around 200 to 250 units.

Developers are estimated to sell more than 6,500 units in 2024, slightly more than 2023. Prices are expected to moderate from 2023’s 6.8%, increasing up to 5% in 2024.

The number of launches will pick up in 1Q 2025.

In Jan 2025, Bagnall Haus and The Orie will be launched for sale before the Lunar New Year.

5 launches are planned for the month of Feb 2025 after the Lunar New Year. These launches are Aurea, Aurelle of Tampines (EC), Elta, Lentor Central Residences and Parktown Residence.

Huttons Data Analytics is cautiously optimistic of a better performance in the new sale market in 2025. Some of the unsatiated demand in 2024 may flow over to the launches in 1Q 2025.

Developers are estimated to sell between 7,000 and 8,000 units in 2025.

Barring unforeseen circumstances, prices in the property market are estimated to grow between 4% and 7% in 2025.

Upcoming Projects in 2025

* in alphabetical order followed by chronological order
Source: URA, Huttons Data Analytics as of 16 Dec 2024