Singapore’s new home sales more than treble in November as six projects hit the market
This marks the highest sales figure in over a decade, with 2,557 private homes sold
SINGAPORE’S private home market burst back to life in November, on the back of consecutive project launches, strong pent-up demand, and rising consumer sentiment.
Based on data released by the Urban Redevelopment Authority on Monday (Dec 16), developers sold 2,557 private homes in November, more than trebling from the 784 units moved a year earlier.
The latest sales figure, which excludes executive condominiums (ECs), is 246.5 per cent more than the 738 units sold in October this year.
It also marked the highest sales figure since March 2013, when 2,793 units were sold, said OrangeTee Group chief researcher and strategist Christine Sun.
Including ECs, 2,891 units were sold in November with 3,375 units launched, versus the 800 units sold and 970 units launched in the same month in 2023. In comparison, 766 units were sold and 534 units were launched in October 2024.
Wong Siew Ying, PropNex research head, noted that collectively, developers sold 3,295 condominiums and private apartments in October and November – outperforming sales in the preceding nine months, when just 3,049 units were sold.
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Overall, some 6,344 new homes were sold between January and November. This is on track to beat private home sales for the whole of 2023, which were the lowest in 15 years at 6,421 units, said Wong.
Knight Frank head of research Leonard Tay pointed out that Singaporean homebuyers had spent much of the year “watching and waiting in a market that was tepid without much activity”, before coming out of the woodwork in October and November.
Lee Sze Teck, Huttons Asia’s senior director of data analytics, attributed this to an unprecedented six projects launched in November, with several happening over the same weekend.
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Of the six, five were condominium projects and one was an EC.
Among them were the massive 916-unit Chuan Park, which has sold almost 80 per cent of its units, and Emerald of Katong along Jalan Tembusu, which has sold nearly all of its 846 units, said Lee.
The two were also the best-selling projects in November, at median prices of S$2,627 per square foot (psf) for Emerald of Katong and S$2,586 psf for Chuan Park.
Mohan Sandrasegeran, SRI head of research and data analytics, noted that the six new projects were launched at an opportune time, as they aligned with growing buyer interest and favourable borrowing conditions amid the easing of interest rates. The US Federal Reserve has slashed rates twice since September, with experts expecting another cut this month.
“Consequently, many buyers were eager to take advantage of attractive deals as several prominent projects were launched simultaneously,” said OrangeTee’s Sun.
At the same time, developers were in a rush to launch their projects – as soon as they received their sales licences and ahead of the festive period in December and January, said ERA chief executive Marcus Chu.
The confluence of these factors, including a robust pipeline of “well-positioned developments”, resulted in exceptional market activity, Sandrasegeran said.
Analysts predict that new home sales may come in at 6,500 to 7,000 units – excluding ECs – for the whole of 2024, likely higher than the 2023 tally. They also estimate prices growing by up to 5 per cent, moderating from the previous year’s 6.8 per cent.
One-off
However, Wong of PropNex cautioned that such an impressive performance may not have a repeat in the near future.
“November’s robust sales have to be in context and they do not automatically imply that an unfettered resurgence is upon the private housing market,” she said. “Buyers, by and large, remain discerning and continue to take a long-term view of their property (purchases).”
Similarly, Nicholas Mak, chief research officer at Mogul.sg, noted that the take-up rate of private housing and ECs – which measures primary residential demand – was 85.7 per cent in November, the second-poorest performance this year. The lowest was 65.8 per cent, recorded in January.
In comparison, the take-up rate from January to October was 105.7 per cent, so November’s “housing demand could arguably be described as subpar”, said Mak.
Market watchers therefore remain cautiously optimistic about the coming year, and expect a slight uptick in new home sales with 7,000 to 8,000 units potentially sold.
Huttons’ Lee predicts that some unsatiated demand from 2024 may flow over to the launches in the first quarter of next year.
Sun also expects more private home launches in 2025, given the government’s consistent provision of land for residential development.
For instance, the government land sales programme in the first half of next year is expected to yield around 5,030 new private homes, including 980 EC units.
“The supply increase can help mitigate abrupt fluctuations in demand by providing prospective buyers the opportunity to assess their options prior to committing to a private property investment,” said Sun. “This can help improve market stability in the long term.”
Meanwhile, Knight Frank’s Tay believes that the coming year may have more volatility, no thanks to growing geopolitical tensions in regions such as the Middle East and the current impasse in Ukraine.
“A second (Donald) Trump presidency with warning shots of more tariffs and protectionist policies might affect businesses all over the world, affecting the flow of trade and the global economy,” he added.
“Should these combine to affect Singapore’s improving economy and the job market, homebuying demand might (return) to the sidelines as it did for much of 2024.”
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