Strongest new home sales in over a decade

Overview

New private home sales experienced a remarkable increase last month, jumping by more than three times when compared to October 2024. The surge marked the highest monthly developer sales since March 2013, when 2,793 units (excluding executive condominiums or EC) were sold. 

The outstanding sales performance can be attributed to the launch of five new projects in November 2024 (excluding EC), which is the highest number of launches released within a month since November 2019, when six projects were introduced.

The increase in sales was likely fuelled by pent-up demand and improved buyer sentiment, particularly following the interest rate cuts in September, which made mortgages more affordable. Consequently, many buyers were eager to take advantage of attractive deals as several prominent projects were launched simultaneously. Moreover, some buyers aimed to purchase a new home before the year-end holidays. 

            According to data from the Urban Redevelopment Authority (URA), new home sales, excluding ECs, rose 246.5 per cent to 2,557 units in November 2024 from 738 units in October. Including ECs, new home transactions similarly increased by 277.4 per cent from 766 units in October to 2,891 units last month. Compared to November 2023, new home sales (excluding ECs) jumped by 226.1 per cent from 784 units.

New Launches

Last month’s sales were primarily driven by six new project launches (including ECs), four of which launched more than 500 units. These include the 846-unit Emerald of Katong, 916-unit Chuan Park, 552-unit Nava Grove, 504-unit Novo Place, 366-unit Union Square Residences and the 367-unit The Collective at One Sophia.

Emerald of Katong saw strong demand, with 99.3 percent of its units sold during the launch month. Buyers were drawn to the project's excellent design and offerings, particularly those wishing to live near the East Coast. The improved affordability of mortgages likely further incentivized buyers to invest in this city-fringe project, as lower interest rates have made mortgages more accessible.

Chuan Park also saw strong buyer interest last month, with 78.7 per cent of its units sold, due to its prime location near Lorong Chuan MRT station and easy access to the central region via public transport. HDB upgraders and private home downgraders from nearby estates may be drawn to the project since there has not been launch in the area for over a decade.

Besides these projects, Nava Grove achieved strong sales, with nearly 70 per cent of its units sold. The recent interest rate cuts would have likely encouraged both investors and families to purchase, given the development's modern layouts and prime location. Other projects like Novo Place, Union Square Residences, and The Collective at One Sophia also gathered healthy sales. 

By Market Segment

Last month’s sales, excluding ECs, were primarily located in the Rest of Central Region (RCR), accounting for 61.4 per cent or 1,569 units of the total transactions. This was followed by Outside Central Region (OCR) at 34.8 per cent or 890 units, and the Core Central Region (CCR) at 3.8 per cent or 98 units.

Outlook

The recent surge in sales appears to be a temporary phenomenon rather than an indication of an overheated market. Throughout 2024, new home demand has been subdued, primarily due to the lack of significant private project launches. Notably, sales during the first three quarters of 2024 amounted to only 3,049 units, the lowest Q1 to Q3 figures recorded since 2004, the year when data from URA first became available.

Further, some buyers may have capitalized on the improved mortgage conditions. The recent interest rate cuts, while appealing to buyers after a prolonged period of elevated rates, may be gradual next year following the recent US presidential election. Policy changes proposed by the Trump administration which emphasize tax reductions and broad-based tariffs could elevate inflationary risks, potentially undermining rate-cut initiatives. Collectively, these market forces are anticipated to diminish the risks of market overheating and reduce the necessity for cooling measures in the longer term.