Private home sales in Singapore saw a remarkable surge in October 2024, reaching an 11-month high as developers responded to growing demand from homebuyers. This upswing in activity follows a rebound in September, when sales of new private homes picked up after hitting a 16-year low in August.
According to the latest data from the Urban Redevelopment Authority (URA), developers sold 738 private homes in October, excluding executive condominium (EC) units. This marked an 84% increase from the 401 units sold in September and a dramatic rise of more than 3.5 times the 204 units sold in October 2023. October’s sales volume was the highest since November 2023, when 784 units were transacted, said Ms. Christine Sun, Chief Researcher and Strategist at OrangeTee Group.
Key Drivers: Positive Economic Outlook and Affordable Mortgages
The surge in sales is largely attributed to improving consumer sentiment, driven by a recovering economy and recent interest rate cuts that have made mortgages more affordable for buyers. As the economy gains momentum, potential homeowners are showing renewed confidence in the property market.
Major Projects Fueling the Surge
A significant portion of October’s sales was driven by the launch of two key projects: Norwood Grand in the northern region and Meyer Blue in the East Coast. Together, these projects accounted for over half of the total private home sales that month.
- Norwood Grand, located in Woodlands, sold 292 units (84% of its 348 units) during its launch weekend in October. This project holds particular appeal due to the ongoing transformation of the Woodlands area, including the development of the Woodlands Regional Centre, Woodlands North Coast, the RTS Link to Johor Bahru, and the Johor-Singapore Special Economic Zone, all of which have significantly boosted the area’s appeal.
- Meyer Blue, a freehold condominium, sold 124 units (more than 50% of its 226 units) in October. The development’s prime location, unobstructed sea views, and excellent connectivity to new MRT stations have made it particularly attractive to buyers. Notably, 22 units sold at Meyer Blue were priced at $5 million or more, marking the highest number of luxury homes sold since November 2023. These premium units ranged from 1,528 sq ft to 2,992 sq ft in size.
Executive Condominium (EC) Market
In the EC market, sales remained relatively stable. Developers sold 28 new EC units in October, a slight decrease from the 32 units sold in September. However, with the recent launch of Novo Place, a 504-unit EC in Tengah, EC sales are expected to gain momentum in the coming months. Analysts remain optimistic, forecasting a surge in sales as more than 2,500 new homes are set to hit the market in November.
Strong Launch Pipeline and Future Prospects
Looking ahead, several new launches in November are expected to keep momentum strong. These include The Collective at One Sophia, Union Square Residences, Chuan Park, Nava Grove, and Emerald of Katong. Analysts are predicting that November could witness the highest monthly sales figures in 2024, as many of these projects are large-scale developments with over 500 units, which tend to attract more buyers.
High-End Market Performance
The luxury segment also saw robust activity in October. In particular, the newly launched Union Square Residences sold 75 units (about 20% of its 366 units) by early November. The average price for these units was around $3,200 per square foot. Notably, 83% of buyers at Union Square Residences were Singaporeans, with the remaining 17% consisting of Permanent Residents (PRs) and foreigners from countries such as China, Malaysia, the UK, Norway, and the USA, who benefit from the same tax treatment as Singaporeans. One of the most notable transactions was a 5-bedroom Sky Suite on the 38th floor, which was sold for $9.288 million ($3,751 per square foot).
Conclusion: A Strong Finish to 2024
The private home market in Singapore is on a positive trajectory, bolstered by strong sales figures in October and a strong pipeline of upcoming launches. Analysts expect continued growth, with November set to deliver record-breaking sales as more developments come online. With improving economic conditions and affordable financing options, demand for new private homes remains robust, positioning the market for a strong finish to 2024.
As the market rebounds, homebuyers are keen to seize opportunities, particularly in developments with unique features, prime locations, and long-term growth potential. Whether in the luxury or mid-tier segment, the outlook for the private home market remains optimistic.
