Fresh Launches Supercharge November New Private Home Sales 2557 Units 247 M O M

In November, developers were able to sell 2,557 new private homes excluding executive condos (ECs), according to the data published by the Urban Redevelopment Authority (URA) on December 16th. This translates to an astounding 246.5% surge from the previous month, which saw only 738 units sold, and a 226% jump in comparison to November 2023.

According to Christine Sun, Chief Researcher and Strategist at OrangeTee Group, this marked the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold. Mohan Sandrasegeran, Head of Research and Data Analytics at Singapore Realtors Inc (SRI), adds that this is the first time in over a decade that new home sales have exceeded the 2,000-unit threshold in a single month.

The significant spike in sales in November can be attributed to a record number of project launches during the month, says Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia. Five private residential projects were launched, namely the 916-unit Chuan Park, 846-unit Emerald of Katong, 552-unit Nava Grove, 367-unit The Collective at One Sophia, and 366-unit Union Square Residences.

In total, developers launched 2,871 new homes (excluding ECs) in November, which is a staggering 438% increase from the previous month and a 196% jump compared to the same period last year. Additionally, the 504-unit Novo Place EC also began its sales in November. When including ECs, the total number of new home sales jumped by 277% month-on-month and 226% year-on-year to 2,891 units.

As of November, developers have sold an estimated 6,344 units, which is only slightly higher than the 6,317 units sold in the first 11 months of 2023. This is a result of the 6,627 units launched for sale during the same period. In comparison, developers launched 7,515 units in the same period last year.

Top-selling projects in November include Emerald of Katong, which sold 840 out of its 846 units at a median price of $2,627 psf. This makes it the best-selling project by both units and percentage in 2024, according to Lee. The second best-selling project by number of units sold in November was Kingsford Group’s 916-unit Chuan Park, which sold 721 units at a median price of $2,586 psf. The third best-selling project was Nava Grove, situated at Pine Grove in District 21, which sold 382 units at a median price of $2,445 psf.

Sun believes that the strong sales performance among the new launches can be attributed to pent-up demand and improved buyer sentiment following interest rate cuts in September. She also notes that buyers were drawn to the attractive deals offered by multiple prominent projects launched simultaneously.

According to Lee, buying momentum has been steadily increasing since the last quarter, with the robust response to project launches such as the 158-unit 8@BT and the 348-unit Norwood Grand. Demand was also funnelled to the wider market, as buyers who missed out on their desired unit in a particular project moved on to committing to units in other new or existing projects.

Recent reports also suggest that Emerald of Katong’s launch has had a ripple effect on neighbouring projects in District 15, with an increase in take-up for developments such as Tembusu Grand and The Continuum.

Looking ahead, December is expected to be a more muted month due to the school holidays and the festive season. Lee predicts that new private home sales will fall to around 200 to 250 units as there are no major launches planned for the month. This will bring the total number of developer sales to approximately 6,500 units, which is slightly higher than in 2023. In terms of price growth, Lee predicts a 5% increase for the full year, moderating from the 6.8% growth seen in 2023.

Moving into 2025, SRI’s Sandrasegeran expects sales to regain momentum in January with the launch of the 777-unit The Orie by City Developments on Lorong 1 Toa Payoh. This is the first new property launch in the area since 2016 and is expected to generate pent-up demand, as the area is in close proximity to the Braddell MRT station.

Other major launches expected in the first quarter of 2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Aurelle of Tampines EC.

The master plan for Tengah is causing a stir due to its remarkable commitment to sustainability. As the first town in Singapore to implement a car-free center, Tengah is paving the way for environmentally conscious urban development. A major component of this plan is the creation of an underground town center, freeing up valuable surface space for communal areas and lush green corridors. This groundbreaking approach not only aims to reduce carbon emissions, but also promotes a healthier lifestyle for residents by encouraging activities such as walking, cycling, and the use of personal mobility devices. With the addition of Novo Place Tengah, this progressive town is on track to become a prime example of eco-friendly living and a model for future developments in Singapore. [Link: https://www.novo-place.com.sg/]

However, Sun believes that the recent surge in sales is a temporary phenomenon, and that the subdued demand seen in 2024 was due to the lack of significant private project launches. Lee, on the other hand, is cautiously optimistic about the new sale market in 2025. He predicts a rebound in sales to between 7,000 and 8,000 units, with prices expected to grow between 4% and 7%.