The sales of developers in November increased to 2,557 units, the highest level since March 2013 when 2793 units were sold.
According to the Urban Redevelopment Authority, data was released on December 16 it was an increase of 246.5 percent increase over October’s sales and 226 percent more than a year before.
New homes sold which include executive condos (ECs) have increased by 277.4 percent to reach 2,891 from 766 in the month of October.
Following months of lackluster launch activity, 2871 units (excluding ECs) were launched in November. This was 437 percent higher than the month before and more than 196 percent better than the previous year.
A total of 504 brand new ECs were also offered for sale.
When interest rates dropped in November and September the homebuyers came back to the market in huge numbers.
Over 82 percent of new homes sold in November was due to six new residential launches Chuan Park Emerald of Katong Nava Grove The Collective At One Sophia Union Square Residences Novo Place EC.
In November and October the total number of private houses sold totalled 3,295 units. This is more than the 3,049 units that were recorded during the initial nine months of 2024.
The 6,344 new homes that developers sold in the first 11 months of the year are predicted to exceed the sales of 2023 that were the lowest in 15 years. 6,421 units, excluding the ECs.
The sales within the EC segment increased from 28 units to 334 units in November. This was mostly because of Novo Place’s latest launch that sold 289 apartments with a median price of $1,654 per square foot.
Six new launches and the closing of Emerald of Katong changed the mood.
The most popular condominium for November was Emerald of Katong which is a project with a city-fringed design. Emerald of Katong sold 840 units out of 846 units at a median price of $2.627 per square foot. Another project that is city-fringed, Nava, sold 382 with a median price of $2.445 per square foot.
Chuan Park, the most well-known area, was the most popular, with 721 transactions and an average of $2,586 for square foot. It is because of the sluggish demand from HDB upgraders as well as private downgraders as well as the lack of new developments within the region for over 10 years.
The expected increase in the number of new homes sold during the fourth quarter could result in an increase of 3-4 percent on the index of private residential prices in 2024.
While November was a booming month for sales, a single swallow isn’t enough to make it a summer. This remarkable performance is not likely to repeat in the near future.
In November, launches in central areas with more expensive entry fees were more measured in their take-up rates. December is expected to be a slow month, because of the Christmas season.
If the demand for the product is expected to persist into the New Year following the period of holiday.
The geopolitical tensions which could result from the increased uncertainty within the Middle East, the current impasse in Ukraine and the possibility of more protectionist or tariffs policies from the US under a new Trump administration, could impact global business and can have a negative effect on trade as well as the world economy.
If this impacts on Singapore’s employment market and economy, then buyers could be forced to delay purchasing a home until 2024.
The reduction in interest rates could slow down in 2025 because of policy changes proposed by the Trump administration that focuses on tax reductions and tariffs on a general basis. These policies may increase the risk of inflation, which could affect rate cutting initiatives.
These market forces can reduce the chance of a hot local property market, and also the need for further cooling measures.
In January 2025, new home sales will increase, due to new launches such as the 777-unit Orie in Toapayoh. This is the first major Toapayoh launch since Gem Residences was launched in the year 2016.
The impressive performances of Chuan Park and the Emerald of Katong is a testament to the value of these projects which offer a wide range of facilities. This is a good sign for the future of the development of large scales.