New launches drive November new private home sales up to 2,557 units, soaring 246% m-o-m

According to data released by the Urban Redevelopment Authority (URA) on 16 December, developers sold 2,557 new private homes (excluding executive condominiums, or ECs) in November. This represents a 246.5% surge from the 738 new private homes sold in October.

This surge marks the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were transacted. It is also the first time since then that monthly new home sales have crossed the 2,000-unit threshold.

The jump in November developer sales was driven by an unprecedented number of project launches during the month. Five private residential projects were launched in November: the 916-unit Chuan Park, the 846-unit Emerald of Katong, the 552-unit Nava Grove, the 367-unit The Collective at One Sophia, and the 366-unit Union Square Residences.

Developers launched 2,871 new homes (excluding ECs) in November, up 438% month-on-month and 196% year-on-year.

The 504-unit Novo Place EC also commenced sales in November. Inclusive of ECs, new home sales climbed 277% month-on-month and 226% year-on-year to 2,891 units in November.

Year to date through November, developers have sold 6,344 new homes, slightly higher than the 6,317 new homes sold in the first 11 months of 2023. This follows developers placing 6,627 new homes on the market in the first 11 months of 2024, compared with 7,515 units launched in the same period last year.

Top-selling projects

Emerald of Katong was the best-selling project in November. Developed by Sim Lian Group, the 846-unit development along Jalan Tembusu in the Rest of Central Region (RCR) moved 840 units, or 99%, during the month at a median price of $2,627 psf. This made the 99-year leasehold project the best-selling development not only in November, but across the whole of 2024 in terms of both units sold and take-up rate.

Located in the sought-after District 15 in the East Coast, Emerald of Katong drew buyers with its distinctive design. Improved mortgage affordability likely provided an added boost for buyers investing in this city-fringe project, as lower interest rates kept home loans within manageable levels.

Kingsford Group's 916-unit Chuan Park sold 721 units (79%) at a median price of $2,586 psf, making it the second best-selling project in November by sales volume. The 99-year leasehold condominium is located in Lorong Chuan in the Outside Central Region (OCR), right next to Lorong Chuan MRT station.

Nava Grove, located off Ulu Pandan Road in District 21, was the third best-selling project by units sold. Jointly developed by MCL Land and Sinarmas Land, the 99-year leasehold RCR development sold 382 units (69%) in November at a median price of $2,445 psf.

The strong sales momentum across newly launched projects was fuelled by pent-up demand and improved buyer sentiment following September's interest rate cuts. Consequently, with several prominent projects launched concurrently, many buyers were eager to capitalise on attractive opportunities.

The RCR accounted for 1,569 new private homes sold in November, representing over 60% of total sales. This was followed by the OCR, with 890 units sold (35%). In the Core Central Region (CCR), 98 new homes were sold in November, touching a one-year high. CCR sales were lifted by the launch of The Collective at One Sophia, which sold 62 units at a median price of $2,732 psf.

New launches to sustain momentum into 2025

Looking ahead, December is expected to be quieter due to the school holidays and year-end festivities. With no major launches slated for December, new private home sales could taper to around 200 to 250 units. This would bring full-year developer sales to approximately 6,500 units, slightly above the 6,421 units sold in 2023.

In terms of prices, full-year price growth is projected at around 5%, moderating from the 6.8% increase seen in 2023.

The recent sales surge is a momentary spike and does not point to an overheating property market. Sales in the first three quarters of 2024 totalled just 3,049 units, marking the lowest Q1-to-Q3 figure since 2004, the year URA first began publishing the data.

November's robust sales must be viewed in context; they do not automatically signal an unconstrained rebound in the private housing market.

New home sales are set to regain traction in January 2025 with the launch of the 777-unit The Orie along Lorong 1 Toa Payoh. No new private residential developments have been launched in the estate since Gem Residences in 2016, and this extended gap is likely to unleash pent-up demand and sustained interest for this mature-estate project near Braddell MRT station.

Other projects expected to launch in 1Q2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Tampines EC, Aurelle of Tampines.

Market watchers remain "cautiously optimistic" about a stronger performance for the new private residential sales market in 2025. Unmet demand from 2024 is likely to carry over into 1Q2025 launches. Developer sales are forecast to rebound to between 7,000 and 8,000 units in 2025, while home prices are expected to rise between 4% and 7%.