New private home sales in Singapore surged by an unprecedented 84% month-on-month in October 2024, with developers selling 738 units (excluding executive condos).
This marks a significant rebound from the 401 units transacted in September and a remarkable 262% increase compared to the 204 units sold in October 2023.1 Several factors have contributed to this remarkable turnaround, including renewed buyer confidence spurred by improved economic conditions and attractive new launches.
Factors Driving the Resurgence:
Improved Economic Outlook and Interest Rate Cuts: The resurgence in home sales is attributed to improved economic growth and recent interest rate cuts, which have boosted buyer confidence and improved affordability.1Lower interest rates allow buyers to secure larger loans, making new homes more accessible.
Competitive Pricing Strategies: Developers have implemented competitive pricing strategies to attract buyers, particularly in the Outside Central Region (OCR).2 For instance, Norwood Grand, the best-selling project in October, located in Woodlands, drew buyers with its attractive prices, with almost 75% of units sold priced at $2 million or below.2
Surge in New Launches: October witnessed a surge in new private home launches, with developers releasing 534 units, a 22.2% increase from September and a nearly tenfold increase compared to October 2023.3 This influx of new inventory has provided buyers with a wider selection of options and spurred sales activity.
Top-Performing Projects Capture Buyer Attention
Norwood Grand: Developed by City Developments Limited (CDL), Norwood Grand emerged as the top-selling project in October, with 292 units (over 80%) sold at a median price of $2,081 psf.2 The project’s competitive pricing and location in the OCR contributed to its strong sales performance.2
Meyer Blue: This 226-unit project on Meyer Road, developed by UOL Group and Singapore Land Group (SingLand), also witnessed robust sales, moving 124 units at a median price of $3,240 psf during its preview sales.4 Located in prime District 15 in the Rest of Central Region (RCR), Meyer Blue attracted buyers seeking a more centrally located residence.4
Pinetree Hill: Another strong performer in October was Pinetree Hill, a 520-unit development in the RCR.5 The project sold 71 units at a median price of $2,541 psf, demonstrating sustained buyer interest.5
Market Segment Analysis
OCR Dominates Sales: In line with the trend of affordability-driven demand, projects in the OCR accounted for 62.1% of total transactions in October, with 458 units sold.6 This suggests buyers are prioritizing value for money and seeking larger living spaces in more suburban locations.
CCR Sees Renewed Interest: Despite the overall preference for OCR properties, the Core Central Region (CCR), which comprises prime districts, witnessed a notable uptick in sales.6 Transactions in the CCR more than doubled from 15 units in September to 32 units in October, with foreign buyers accounting for a significant portion of these purchases.6 This indicates a resurgence of interest in the luxury segment, driven by foreign investors seeking a safe haven for their capital.
Luxury Segment Rebounds: The luxury market experienced a significant recovery in October, with six new non-landed homes sold for over $10 million, the highest monthly sales figure for this price segment since October 2021.7 This trend highlights the growing confidence among high-net-worth individuals in Singapore’s property market.
November Poised for Record-Breaking Sales
Anticipation for Major Launches: Industry experts anticipate a further surge in new home sales in November, fueled by several major project launches.8 The highly anticipated launches of Emerald of Katong (846 units), Nava Grove (552 units), and Novo Place EC (504 units) are expected to attract significant buyer interest.8 These projects offer a range of unit sizes and cater to various buyer profiles, further contributing to the anticipated sales momentum.
Potential to Exceed 2,000 Units: Some analysts predict that new private home sales in November could surpass 2,000 units, a level not seen since March 2013.9 This projection is based on the strong underlying demand, the attractive pipeline of new launches, and the continued positive market sentiment.
Factors Contributing to Strong Sales: Projects like Emerald of Katong and Nava Grove are the first in their respective districts to incorporate the new Gross Floor Area (GFA) harmonization rule, which excludes non-strata areas from the sellable space.8 This new rule results in more efficient layouts and potentially more attractive prices, further enticing buyers.8 Additionally, the absence of new EC launches since January 2024 has created pent-up demand in this segment, which is expected to contribute to strong sales at Novo Place EC.9
Positive Outlook for Singapore’s Property Market
Projected Sales and Price Growth: Industry experts forecast developers’ sales to reach between 5,500 and 6,000 units in 2024, with prices expected to increase by up to 3%.10 This positive outlook is supported by the strong sales momentum in recent months and the anticipated continued demand.
Expectation of Market Recovery: Despite a slight decline in private residential prices in the third quarter of 2024, analysts anticipate a more significant recovery in developer sales in 2025.11 This positive outlook is based on the expectation of continued economic growth, stable interest rates, and healthy demand from both local and foreign buyers.
The robust sales performance in October 2024 underscores the resilience and attractiveness of Singapore’s private housing market. Driven by favorable economic conditions, attractive new launches, and renewed buyer confidence, the market is poised for continued growth in the coming months.
