According to data published by URA on December 16, developers have successfully sold a total of 2,557 new private homes, excluding executive condos (ECs), in November. This represents a 246.5% increase from the 738 units sold in October, as well as a 226% surge compared to the same period in 2023.
Christine Sun, chief researcher and strategist at OrangeTee Group, points out that this surge in sales marks the highest monthly developer sales since March 2013, when 2,793 units were sold, excluding ECs. Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is the first time new home sales have surpassed the 2,000-unit mark in a single month since March 2013.
Lee Sze Teck, senior director of data analytics at Huttons Asia, explains that this significant rise in developer sales is a result of the unprecedented number of project launches in November. Five private residential projects were launched, including Chuan Park with 916 units, Emerald of Katong with 846 units, Nava Grove with 552 units, The Collective at One Sophia with 367 units, and Union Square Residences with 366 units.
A total of 2,871 new homes were launched for sale, excluding ECs, in November, reflecting a 438% increase from the previous month and a 196% increase from the same period in 2023. In addition, the 504-unit Novo Place EC also commenced sales in November, bringing the total number of new home sales to 2,891 units, which is a 277% spike compared to the previous month and a 226% jump from the same period in 2023.
So far, developers have sold an estimated 6,344 units as of November, only slightly higher than the 6,317 units sold in the first 11 months of 2023. This can be attributed to the 6,627 units that were launched for sale by developers during the same period in 2024. In comparison, 7,515 units were launched during the same period in 2023.
Top-selling projects in November include Emerald of Katong, which sold 840 units, or 99% of its 846 units. The 99-year leasehold development by Sim Lian Group is located in the Rest of Central Region (RCR) and has a median price of $2,627 psf. It is also the best-selling project by units and percentage in 2024. According to OrangeTee’s Sun, buyers were drawn to the project’s excellent design and offerings, with many looking to live near the East Coast. The recent interest rate cuts have also made mortgages more accessible, encouraging buyers to invest in this city-fringe project.
Next on the list is Chuan Park, developed by Kingsford Group with 721 units, or 79% of its 916 units, sold in November. The 99-year leasehold condo, located on Lorong Chua in the Outside Central Region (OCR), has a median price of $2,586 psf. Nava Grove, developed by MCL Land and Sinarmas Land, was the third best-selling project, with 382 units, or 69% of its 552 units, sold during the month. The 99-year leasehold, RCR development has a median price of $2,445 psf and is situated at Pine Grove in District 21.
Sun attributes the strong sales performance among the new launches to pent-up demand and improved buyer sentiment following the September interest rate cuts. She also notes that these attractive deals coincided with the simultaneous launch of several prominent projects, further incentivizing buyers to invest.
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Lee adds that buying momentum has been increasing since the last quarter, with robust responses seen for projects such as 8@BT with 158 units and Norwood Grand with 348 units. The widened market also saw buyers who missed out on their desired unit in a specific project quickly committing to units in other new or existing projects. Last month, EdgeProp Singapore reported that the launch of Emerald of Katong had a ripple effect on neighboring projects, with Tembusu Grand and The Continuum experiencing increased take-up rates.
Moving forward, a quieter December is expected due to the school holidays and festive season. Lee predicts new private home sales to fall to 200 to 250 units, bringing the total sales for 2024 to about 6,500 units. This is slightly higher than the sales recorded in 2023. Lee also predicts a moderate price growth of 5%, compared to the 6.8% growth seen in 2023.
Looking into 2025, Sandrasegeran expects new home sales to pick up again in January with the launch of The Orie by City Developments, located on Lorong 1 Toa Payoh. This is the first new property launch in the area since Gem Residences in 2016, and the extended gap is expected to generate pent-up demand. Other launches expected in the first quarter of 2025 include Bagnall Haus with 113 units, Aurea with 186 units, and Aurelle of Tampines EC with 760 units.
Sun believes that the recent surge in sales is temporary, as new home demand has been subdued throughout 2024 due to the lack of significant private project launches. She also points out that developer sales during the first three quarters of 2024 were the lowest recorded since 2004, when URA data became available. Lee is cautiously optimistic about a better performance in the new sale market in 2025, projecting sales to rebound to 7,000 to 8,000 units and prices to grow between 4% and 7%.