Developers’ sales jumped on improved consumer sentiment and lower rates

Overview

Developers' sales in October 2024 reached their highest level since November 2023, when 784 units (excluding executive condominiums (ECs)) were sold. Many buyers returned to the market after the seventh lunar month. The market resurgence can be attributed to improved consumer sentiment, driven by a strengthening economy and recent reductions in mortgage rates, which have enhanced housing affordability. The favourable market conditions prompted more new project launches in recent weeks, leading to increased overall market activity and more deals being closed.

Developers sold 738 private homes, excluding EC, in October, based on data released by the Urban Redevelopment Authority (URA). New home sales jumped by 84 per cent from 401 units in September 2024. October has recorded the highest number of transactions year-to-date, and it is the highest October sales since 2021, with 912 transactions.

Including ECs, new home sales increased by 76.9 per cent from 433 units in September to 766 units last month. Compared to October 2023, new home sales (excluding ECs) surged by 261.8 per cent from 204 units.  

New Launches

Last month’s sales came primarily from two new project launches, the 348-unit Norwood Grand and the 226-unit Meyer Blue. Norwood Grand garnered strong buying interest as 83.9 per cent of the project, or 292 units, were sold last month. The exceptional sales performance may be attributable to this project being the first condominium introduced in Woodlands since 2012. It likely appealed to young families seeking to upgrade from nearby HDB flats to a private residence.

The other new launch, Meyer Blue, sold 54.9 per cent of the project or 124 units last month. The other best-selling projects were mostly in the suburban and city fringe areas, including Pinetree Hill, Hillock Green, Lentor Mansion, Tembusu Grand, Lentoria, Hillhaven and The Myst.

By Market Segment

Last month’s new home sales, excluding ECs, were primarily located in the Outside Central Region (OCR), accounting for 62.1 per cent or 458 units of the total transactions. This was followed by the Rest of Central Region (RCR) at 33.6 per cent or 248 units, and the Core Central Region (CCR) at 4.3 per cent or 32 units.

Luxury Market

The buying sentiment in the luxury market improved significantly. URA Realis data shows six new non-landed homes were sold for over S$10 million last month, marking the highest monthly sales since October 2021, when ten units were sold. Last month's most expensive transaction was a 4,219-square-foot freehold apartment located on the fifth floor at 32 Gilstead, which sold for S$14.49 million, or S$3,434 per square foot (psf). Another unit on the same floor and the same project was sold for S$14.46 million or S$3,435 psf.  

Meanwhile, 31 new non-landed homes were sold for at least S$5 million last month, representing the highest monthly sales since November 2023, when 60 units were transacted. Of these transactions, 22 were from the newly launched project, Meyer Blue.

Outlook

The recent interest rate cuts have boosted buyer sentiment by making mortgages more affordable. Moreover, with prices stabilizing, HDB upgraders looking to upgrade or have sold their flats at high prices are now more inclined to enter the market.

Developers will be launching several new projects before the year-end holidays. New home sales are expected to surge in November as more than 2,500 new homes could be added to the market within a month. Furthermore, many of these launches are large-sized, with more than 500 units, and big developments tend to attract more buyers, given the wide array of condo facilities.

Some of the key launches include Emerald of Katong, Chuan Park, Nava Grove, and Union Square Residences.

Consequently, there could be a robust conclusion for new home sales at the end of the year, with the highest sales expected to occur in November. Other projects like Arina East Residences and The Orie may be launched at the beginning of 2025. 

The availability of many attractive projects in desirable locations is anticipated to drive sales demand higher into next year, as buyers will have a diverse range of options to select from.