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Based on URA statistics issued on Nov 15, developers sold 738 new private houses last month—excluding executive condominiums (ECs). It shows a 262% y-o-y rise from the 204 apartments sold in October 2023 and an 84% m-o-m rise from the 401 units traded in September.
Senior director of data analytics at Huttons Asia Lee Sze Teck said, “buyers are returning to the market after better economic growth and interest rate cuts boosted confidence and sentiments.” The reduced interest rate lets consumers borrow more, therefore enhancing their capacity to buy a new house.
October saw developers start 534 more private residences for sale, a 22.2% m-o-m rise from the 437 units started in September. Nearly ten times more than the 54 units introduced in October 2023, the 534 units published last month are
This increases the total number of private residences started in the first 10 months of the year to an expected 3,756 units – a 42.6% y-o-y reduction from the 6,545 units inaugurated during the same time previous year.
Best Selling Projects
Last month, Norwood Grand turned out as the top-selling project. With 292 units (almost 80%) and a median price of $2,081 psf, the 348-unit condo built by City Developments Limited (CDL) along Champions Way in Woodlands sold The project is in the Outside Central Region’s (OCR) District 25.
Lee from Huttons claims that the competitive price of Norwood Grand drew in customers. About seventy-five percent of the units sold fell in price between $2 million and less.
The 226-unit condo Meyer Blue by joint developers UOL Group and Singapore Land Group (SingLand) was another fresh building started in October. Last month at a median price of $3,240 psf, the property on Meyer Road in desirable District 15 shifted 124 units during a preview event. It falls in the Rest of Central Region (RCR).
Not unexpectedly, 56% of newly sold homes last month were from Norwood Grand and Meyer Blue. Based on Norwood Grand’s success, the OCR guided private new home sales in October, claims Wong Siew Ying, head of research and content, PropNex.
With another 71 units sold at a median price of $2,541 psf, the 520-unit Pinetree Hill in the RCR came last month’s third most sold property. Originally launched in July 2023 by UOL and SingLand, writes Tricia Song, CBRE head of research for Singapore and Southeast Asia, early take-up had been poor, with only 29% sold in its first month at a median price of $2,360 psf.
Another 71 units were sold in September when Pinetree Hill lowered some prices in response to increased attention on the Pine Grove site. Set to open on November 16 is the joint venture between MCL Land and Sinarmas Land next door, the 552-unit Nava Grove. Pinetree Hill sold seventy-three percent as of October’s end.
Transactions Rises in CCR
OCR estimates, by market sector, contributed for 62.1% (458 units) of the overall October transaction count. With 33.6% (248 units) the RCR accounted for and with 4.3% (32 units) the Core Central Region (CCR).
Still, from 15 units the month before, October’s purchase count in the CCR more than quadrupled. Of the thirty-two CCR units sold, Huttons’s Lee notes ten were purchased by foreigners. “Singapore is a safe heaven among the global uncertainty and continues to attract foreigners to relocate here,” he says.
Last month’s top transaction by absolute price was a 4,219 sq ft, four-bedroom unit at Kheng Leong Co.’s freehold development, 32 Gilstead in the CCR. The luxury boutique condo along Gilstead Road was sold for $14.49 million, or $3,434 psf, on Oct 28. It was a foreigner who bought. Another 4,209 sq ft, four-bedroom unit on the same floor was sold for $14.46 million or $3,435 psf.
Based on caveats lodged with URA, the four units sold at 32 Gilstead on Oct 28 were done at prices ranging from $12.76 million ($3,338 psf) for a 3,821 sq ft unit to $14.46 million ($3,435 psf) for a 4,209 sq ft unit. All four buyers were foreigners, although their nationality was not specified. ERA is believed to have brokered one of the four deals. The four transactions contributed to half of the total eight units (57%) sold in the 14-unit luxury project since it was launched in April this year.
“The buying sentiment in the luxury market improved significantly,” says Christine Sun, chief researcher and strategist at OrangeTee Group. Six new non-landed homes were sold for over $10 million in October, marking the highest monthly sales of similarly priced units since October 2021, when 10 such units were sold.
November’s ‘turbocharged’ launches
PropNex’s Wong expects home sales in November to be turbocharged by a deluge of attractive project launches, which will collectively offer 3,551 units (including an EC project), providing tailwinds for primary market sales across all segments.
This coming weekend (Nov 16-17) will see the launch of the 846-unit Emerald of Katong, the 552-unit Nava Grove at Pine Grove and the 504-unit Novo Place EC in Tengah.
Emerald of Katong collected 3,629 cheques from interested buyers, equivalent to the project being 4.3 times subscribed. Meanwhile, Nava Grove collected 840 cheques as expressions of interest.
“We are expecting another significant increase in new units sold m-o-m,” says Marcus Chu, CEO of ERA Singapore. “We foresee similar strong interest in projects such as Emerald of Katong and Nava Grove. These are the first projects in their respective districts with the new GFA [gross floor area] harmonisation of floor area rule that would exclude non-strata areas such as air-con ledge as part of the sellable space. They should entice buyers with their efficient layouts and attractive prices.”
Chu also expects Novo Place’s launch “to breathe life into the EC, as there were no new EC launches since January 2024, with buyers picking up units from the existing stock of past launches”.
Huttons’ Lee expects new private home sales in November to be as high as 2,100 units. He adds, “This is likely the first time sales will exceed 2,000 units since March 2013”.
Earlier this month, the 366-unit Union Square Residences developed by CDL sold 75 units (about 20%) when it launched on Nov 9 at an average price of $3,200 psf.
Meanwhile, Chinese developer Kingsford Group moved 696 (76%) out of 916 units at Chuan Park when it launched on Nov 10. Units sold averaged $2,579 psf.
OrangeTee’s Sun adds that many of the projects to be launched in November are larger, with at least 500 units. Given the increased number of facilities, such developments tend to attract more buyers.
In the first 10 months of 2024, developers have sold 3,787 new private homes (excluding ECs). With the new launches in 4Q2024, PropNex projects that developers’ sales may hit 6,000 units for the whole of 2024, with stronger numbers coming in 4Q2025.
Huttons, on the other hand, is forecasting developers’ sales in 2024 to be between 5,500 and 6,000 units, with prices increasing by up to 3%.
Although private residential prices registered a 0.7% decline in 3Q2024, CBRE’s Song likewise expects 2024’s full-year price growth to be around 3%, a moderation from 6.8% in 2023. She expects 2025 to see “a more significant recovery in developer sales in 2025.”
