The Singapore private residential market is heating up again, with buyers returning in droves, spurred by favorable economic conditions and recent market trends. According to data released by the Urban Redevelopment Authority (URA), new private home sales in October 2024 surged 84% month-on-month (m-o-m) to 738 units (excluding Executive Condos). This marked a significant 262% year-on-year (y-o-y) increase from October 2023, reaffirming strong buyer demand despite ongoing challenges.
Market Trends Driving the Surge
Several factors have contributed to this renewed confidence among buyers. The improved economic growth and recent interest rate cuts have created a more favorable borrowing environment, making home purchases more attainable. As Huttons Asia’s Senior Director of Data Analytics, Lee Sze Teck, pointed out, lower interest rates have increased buyers’ purchasing power, allowing them to secure loans and invest in private properties with greater ease.
Developers have responded to this growing interest by ramping up new launches. In October alone, 534 new private homes were launched—a significant 22.2% m-o-m increase. Notable projects such as Norwood Grand in Woodlands and Meyer Blue in District 15 led the charge, together accounting for 56% of total new home sales that month. Norwood Grand, priced at a median of $2,081 psf, attracted buyers with its competitive pricing, while Meyer Blue sold units at a median price of $3,240 psf, reflecting the sustained demand in the prime Rest of Central Region (RCR).
OCR and Luxury Segments Shine
The Outside Central Region (OCR) dominated private home sales in October, contributing 62.1% of total transactions. The strong performance of OCR projects like Norwood Grand highlights that buyers are drawn to value-for-money developments that offer competitive pricing, even as overall market prices inch upwards.
Interestingly, the Core Central Region (CCR) also saw a doubling of home purchases in October compared to the previous month, with luxury properties commanding attention. Four units at the boutique development 32 Gilstead were sold at record-breaking prices of over $12 million each, showcasing Singapore's enduring appeal as a safe haven for high-net-worth foreigners.
November's Market Outlook: A Wave of New Launches
Looking ahead, November is shaping up to be another robust month, with over 3,500 new units set to hit the market. Projects like the 846-unit Emerald of Katong, 552-unit Nava Grove, and 504-unit Novo Place EC are already drawing significant interest from buyers. PropNex expects November’s sales to be "turbocharged," possibly exceeding 2,100 units—the highest sales volume since March 2013.
Developers have strategically aligned these launches to take advantage of the momentum, with efficient layouts, attractive pricing, and the new GFA harmonisation rule making these properties even more appealing to buyers.
Summary Highlights:
- Sales Surge: October 2024 saw 738 new private homes sold, marking an 84% m-o-m increase and a 262% y-o-y rise.
- Buyers Return: Improved economic conditions and lower interest rates have boosted market confidence and affordability.
- Top Performers: Norwood Grand and Meyer Blue led October sales, showcasing demand across various market segments.
- OCR Dominance: Projects in the OCR accounted for 62.1% of total transactions.
- Luxury Appeal: High-net-worth foreigners continue to see Singapore as a safe haven, fueling demand in the CCR.
- Exciting November Ahead: Over 3,500 new units, including ECs, are launching this month, setting the stage for record-breaking sales.
Market Interpretation and Insights for Buyers
The strong sales performance in October signals a return of buyer confidence and a resilient demand for private homes. With interest rates now more favorable, buyers are seizing the opportunity to enter the market before prices climb further. Additionally, the diversity of offerings—from competitively priced OCR projects to luxury CCR developments—ensures options for various buyer profiles.
November’s "turbocharged" launches, coupled with the growing momentum from October, suggest that we are entering a new phase of market activity where demand continues to outpace supply. While the supply of new launches remains below historical averages, the projects on offer in November are expected to cater to both first-time buyers and seasoned investors.
Call to Action
As a real estate professional, I am committed to keeping my clients informed about the latest market trends and opportunities. If you're considering entering the private property market or upgrading your current property, now is the time to act. With demand surging and a strong pipeline of attractive launches, staying ahead of the curve is crucial.
Contact me today to get updates on the latest launches and find your dream home or ideal investment property in this dynamic market.
Source:
EdgeProp | New private home sales surge 84% in October, a precursor to stirring sales in November