Introduction
New private home sales in Singapore experienced a significant surge in October 2024, driven by major launches across various regions. This uptick in sales marks a notable recovery from the seasonal lull observed earlier in the year. In this blog post, we will delve into the key factors contributing to this increase and explore the impact of these new launches on the market.
Renewed Buying Interest and Healthy Take-Up Rates
The renewed buying interest in the Singaporean property market was evident in September, with new private home sales jumping by 90% compared to August 2024. This increase was largely attributed to the healthy take-up of units at a newly launched project in the city fringe, which saw developers selling 401 new private homes during the month[1].
Regional Breakdown
The Rest of Central Region (RCR) led the way in new home sales, with developers transacting 221 new units in September. This represents a more than three times jump in sales from the 66 units moved in August. The RCR accounted for about 55% of the private new home sales in September, with 8@BT emerging as the top-selling project, selling 83 units at a median price of $2,727 psf[1].
Outside Central Region (OCR) Performance
The Outside Central Region (OCR) also witnessed higher sales during the month. In September, there were 165 units of new private homes sold, about 32% more than the 125 units that changed hands in the previous month. The most popular OCR project was Hillhaven, which sold 46 units at a median price of $2,120 psf. Other OCR projects like Hilllock Green, Lentoria, The Myst, and Pollen Collection also saw increased sales activity[1].
Impact of Major Launches
The surge in new private home sales can be attributed to several major launches that took place in September and October. One notable example is Meyer Blue, which transacted 50% of its 226 units at launch. This achievement follows the success of previous launches like Kassia and 8@BT, which also achieved at least a 50% take-up rate at their launch weekends[1][2].
Upcoming Launches
The coming months are expected to see a bumper slate of new launches, including Emerald of Katong, Chuan Park, Nava Grove, Union Square Residences, and Novo Place. These projects are anticipated to tap different segments of demand in the market, including first-time homebuyers, HDB upgraders, and investors. The strong presence of Singaporean buyers is also expected to continue, with 90% of non-landed new private homes sold in September being purchased by Singaporeans[1].
Market Sentiment and Economic Factors
Despite the recent recovery in new private home sales, market sentiments remain sensitive to geopolitical developments and global interest rate changes. The recent US Federal Reserve rate cut has offered some relief to homebuyers, but domestic mortgage rates are expected to remain elevated relative to the low levels seen over the past decade. Buyers are still finding value in resale properties, with demand in the secondary market remaining robust. The price gap between new launches and resale non-landed private homes continues to be significant, with a notable 83% of non-landed secondary transactions falling below the $2.5 million price quantum[2].
Forecast for the Remainder of 2024
With a varied pipeline of new launches and buyers returning to pick up units at previously launched projects, developers are optimistic about finishing the year on a brighter note. PropNex expects new home sales volume to reach between 4,500 to 5,000 units (excluding executive condos) for the full year. ERA Singapore also forecasts new home sales to reach between 5,500 to 6,500 units for all of 2024, driven by the bulk of 2024 launches happening in the last quarter[1][2].
Conclusion
The surge in new private home sales in October 2024, buoyed by major launches, marks a significant recovery in the Singaporean property market. As the year comes to a close, the market is expected to see a strong take-up in new home sales, driven by a variety of upcoming launches and sustained buyer interest. With continued economic stability and sound macroeconomic conditions, the property market is poised for a promising end to 2024.
