According to data published by the URA on December 16th, developers sold 2,557 new private homes in November, excluding executive condominiums (ECs). This marks a whopping 246.5% increase from the 738 units sold in October and a 226% growth compared to November 2023.
The limited availability of land in Singapore has emerged as a key factor driving the high demand for condominiums in the country. As a small island nation experiencing a steady increase in population, Singapore has faced difficulties in securing enough land for development. To address this issue, strict land use policies have been put in place, resulting in a fiercely competitive real estate market where property prices continue to rise. This has made investing in real estate, specifically condominiums, a highly appealing opportunity with the potential for significant capital appreciation. To keep pace with the growing demand, new condo launches are constantly flooding the market, catering to the increasing interest. New Condo Launches can be found in abundance in the thriving real estate market of Singapore.
Christine Sun, the chief researcher and strategist at OrangeTee Group, notes that this is the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold. Mohan Sandrasegeran, the head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is also the first time new home sales have surpassed the 2,000-unit mark in a single month since March 2013.
The surge in sales can be attributed to an “unprecedented” number of project launches in November, says Lee Sze Teck, the senior director of data analytics at Huttons Asia. The month saw the launch of five private residential projects: the 916-unit Chuan Park, the 846-unit Emerald of Katong, the 552-unit Nava Grove, the 367-unit The Collective at One Sophia, and the 366-unit Union Square Residences.
Including ECs, a total of 2,891 units were sold in November, representing a 277% increase from the previous month and a 226% rise compared to November 2023.
Developers have launched 2,871 new homes (excluding ECs) in November, which is a 438% jump from the month before and a 196% increase from a year ago. Additionally, the 504-unit Novo Place EC also commenced sales in November, bringing the total number of units sold to 2,891.
As of November, a total of 6,344 units have been sold by developers, slightly higher than the 6,317 units sold in the same period last year. This comes off the back of 6,627 units launched for sale by developers in the first 11 months of 2024. In comparison, 7,515 units were launched across the same period in 2023.
Emerald of Katong, developed by Sim Lian Group, was the best-selling project in November, with 840 units (99%) sold at a median price of $2,627 psf. This makes it the best-selling project by number of units and percentage in 2024, according to Lee.
OrangeTee’s Sun believes that buyers were drawn to the project’s attractive design and offerings, particularly those looking to live near the East Coast. The recent interest rate cuts have also made mortgages more affordable, further incentivizing buyers to invest in this city-fringe project.
The second best-selling project in November was Kingsford Group’s 916-unit Chuan Park, which sold 721 units (79%) at a median price of $2,586 psf. The 99-year leasehold condo, located in the Outside Central Region (OCR), is adjacent to Lorong Chuan MRT Station.
Nava Grove, developed by MCL Land and Sinarmas Land, was the third best-selling project with 382 units (69%) sold in November at a median price of $2,445 psf. This RCR project, located at Pine Grove in District 21, saw strong sales due to pent-up demand and improved buyer sentiment following the September interest rate cuts. Sun adds that the simultaneous launch of several prominent projects also contributed to the strong sales performance.
Looking ahead, Huttons’ Lee predicts a more subdued December due to the school holidays and festive season, with an estimated 200-250 units sold. This would bring the full-year developer sales to approximately 6,500 units, slightly higher than in 2023. In terms of prices, Lee expects a 5% growth for the full year, moderating from the 6.8% growth recorded in 2023.
Moving into 2025, SRI’s Sandrasegeran expects new home sales to pick up again in January with the launch of The Orie by City Developments, a 777-unit project located on Lorong 1 Toa Payoh. This area has not seen a new launch since Gem Residences in 2016, which is likely to generate pent-up demand and continue to attract buyers to this well-established estate close to Braddell MRT Station.
Other projects expected to launch in the first quarter of 2025 include the 113-unit Bagnall Haus, the 186-unit Aurea, and the 760-unit Aurelle of Tampines EC.
While the recent surge in sales may seem like a temporary phenomenon, OrangeTee’s Sun believes that it is a result of subdued demand throughout 2024 due to the lack of significant private project launches. However, Lee remains “cautiously optimistic” of a better performance in the new sale market in 2025, with some of the unsatiated demand from 2024 potentially flowing into the first quarter of the new year. He predicts a rebound in new home sales to between 7,000 and 8,000 units, with prices estimated to grow between 4% and 7%.