November new private home sales surge 246% month-on-month with six new project launches

The launch of six new private residential projects in November drove buying momentum in Singapore. During the month, new private home sales and newly launched units by developers stood at 2,557 and 2,871 units respectively, both hitting 11-year highs.

Analysts believe this bustling scene could recur in January next year as more new launches hit the market. However, the overall market next year may moderate due to macroeconomic factors and an increased supply of private housing.

According to data released by the Urban Redevelopment Authority (URA) on Monday (16 December), excluding Executive Condominiums (ECs), new private home sales reached 2,557 units in November, surging 246.4% from October.

The Rest of Central Region (RCR), representing mid-tier private homes, recorded the strongest sales at 1,569 units. The Outside Central Region (OCR), representing mass-market private homes, and the Core Central Region (CCR), representing prime luxury homes, saw sales of 890 units and 98 units respectively.

November New Launches Surged 437.6% Month-on-Month

Developers aggressively launched new units in November, with numbers surging 437.6% month-on-month to 2,871 units.

A total of six new projects were launched that month, with mid-tier private homes accounting for the largest share at 1,548 units. Mass-market and luxury homes numbered 956 units and 367 units respectively.

If ECs are included, developers launched 3,375 units and sold 2,891 units in November.

Both new private home sales and developer launches in November reached their highest levels since March 2013, when 2,793 units were sold (excluding ECs) and 3,489 new units were rolled out to the market.

The new projects launched in November garnered strong attention and drew crowds of buyers. A sense of "fear of missing out" (FOMO) also emerged among some buyers who, after missing out on their preferred units in one project, rushed to book units in another.

The new private residential projects launched in November included The Chuan Park, Emerald of Katong, Nava Grove, Novo Place, The Collective at One Sophia, and Union Square Residences, with Emerald of Katong recording the strongest sales.

Emerald of Katong also boosted sales of other private homes in the Katong area, including The Continuum, which was launched in May last year. The Continuum moved 131 units in November, making it the fourth best-selling new project that month.

Easing mortgage rates have also prompted some buyers to enter the market. Christine Sun, Chief Researcher & Strategist at OrangeTee Group, noted that alongside interest rate factors, developers rolled out attractive promotional incentives that drew many buyers, while others were eager to secure a new home before the year-end holidays.

As December is typically a lull season for the property market with fewer new launches, upcoming launches in January next year—such as The Orie and Bagnall Haus—are expected to ignite another wave of buying interest.

However, the likelihood of the government tightening property regulations to cool the market may also rise by then.

Tariff policies from the incoming Trump administration in the US could spark a rebound in inflation, potentially slowing the pace of rate cuts. Furthermore, the government plans to release more private residential land parcels in the first half of next year, which will help balance supply and demand and prevent the market from overheating.