25 Oct 2024
3Q2024 Private Property Market: New Launches Drive 60% Growth in Sales
Property Insight

In the third quarter of 2024, the private property market in Singapore experienced a significant upswing, driven by new project launches and increased buyer optimism. Total new home sales rose from 725 units in the second quarter to 1,160 units in the third quarter, marking a 60% quarter-on-quarter increase. This growth was largely driven by a surge in sales in the Rest of Central Region (RCR) and Outside Central Region (OCR). OCR saw the highest rise, with sales increasing by 72.7%, from 414 units in 2Q2024 to 715 units in 3Q2024. Similarly, RCR sales rose by 70%, reflecting a strong preference for suburban and strategically located properties.

Strategic launches, such as 8@BT, Kassia, and Sora, played a crucial role in driving sales. These projects offered attractive features and pricing, appealing to both homebuyers and investors. Kassia and Sora were among the top-selling projects in OCR, with median prices of $2,052 and $2,153 per square foot (psf), respectively. In the RCR, Pinetree Hill led sales with 88 units sold at a median price of $2,499 psf, highlighting the demand for well-positioned properties offering value for money.

The private property price index, however, showed a slight moderation of -0.7% in 3Q2024, compared to a 0.9% increase in the previous quarter. This decline was primarily attributed to a reduction in high-value transactions, particularly in the Core Central Region (CCR), where fewer properties priced at $10 million or above were sold. Overall, private property prices for the first nine months of 2024 increased by 1.6%, compared to a 3.9% increase during the same period in 2023.

Private resale transactions also showed positive growth, with a 1.5% increase quarter-on-quarter in 3Q2024. A total of 3,860 units were transacted, up from 3,802 units in 2Q2024. For the first nine months of 2024, resale transactions reached 10,351 units, a 21.8% year-on-year increase compared to 2023. This growth has been largely supported by HDB upgraders, who accounted for a significant portion of the transactions. The number of HDB upgraders in the private resale market increased by 20.1% year-on-year, reflecting continued interest in upgrading to private properties despite broader market uncertainties.

Looking ahead, new project launches and a favorable interest rate environment are expected to drive a strong finish for the private home sales market in 2024. The Federal Reserve’s interest rate cuts have improved buyer sentiment, leading to a renewed confidence in property investment. This optimism was evident in the success of the Norwood Grand project, which sold 84% of its units during its launch weekend. If interest rates continue to fall, affordability will improve, potentially boosting demand further.

Click here for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

Email: mohan@sri.com.sg   

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Property Insight
25 Oct 2024
HDB Resale Prices Rise 2.7% in 3Q2024 Driven by Larger and Newer Flats

In the third quarter of 2024, the HDB resale market in Singapore experienced strong growth, driven by an increasing preference for larger and newer flats. The HDB Resale Price Index rose by 2.7% in 3Q2024, up from 2.3% in the previous quarter. This brought the total increase for the first nine months of 2024 to 6.9%, significantly higher than the 3.8% rise during the same period in 2023. The price increase was largely due to a higher proportion of transactions involving 4-room and 5-room flats, which have seen growing demand. Additionally, the increased value of newer flats with leases commencing from 2013 onwards has contributed to the overall price growth. These newer flats are commanding price premiums due to their better condition and newer age, pushing overall resale prices higher.

HDB resale volume also saw positive growth in 3Q2024, with a quarter-on-quarter increase of 10.7%. The demand was particularly strong for larger flats, with 5-room flats recording a 13.9% rise in transactions, followed by a 11.8% increase in sales for 4-room flats. In total, HDB resale transactions reached 22,562 units in the first nine months of 2024, compared to 20,188 transactions during the same period in 2023, marking a notable rise in overall sales activity.

The rise in HDB million-dollar resale transactions also underscored the demand for newer flats. In 3Q2024, the number of million-dollar resale flats increased significantly to 331 units, up from 236 units in 2Q2024. Notably, flats with leases commencing from 2013 and onwards accounted for 132 of these transactions, compared to just 80 in the previous quarter. This trend highlights the growing willingness of buyers to pay a premium for newer, well-located flats, further boosting the overall resale market performance.

The outlook for the HDB resale market remains optimistic, supported by strong underlying demand. The October 2024 Build-To-Order (BTO) exercise saw the launch of 8,573 flats across 15 projects under the new classification framework, attracting over 35,000 applicants. With such high interest, a substantial number of potential buyers may face disappointment if they are unable to secure a flat, which could drive them to the resale market as an alternative for immediate housing needs. This spillover from the BTO exercise is expected to bolster the resale market, especially in popular estates, as unsuccessful applicants seek available units.

In conclusion, the third quarter of 2024 has been characterized by rising prices and increasing volumes in the HDB resale market, driven by demand for larger and newer flats, as well as the impact of unmet demand from the BTO exercise. The outlook for the remainder of the year remains positive, with sustained interest expected to drive market activity, though the usual seasonal slowdown may lead to a more stable end to the year. Buyers are encouraged to remain cautious and balance evolving market opportunities with long-term financial sustainability to ensure prudent decision-making in an ever-changing real estate environment.

 

Click

here

for the full report   

   

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

  

Email:

mohan@sri.com.sg


  

Property Insight
25 Oct 2024
3Q2024 Private Property Market: New Launches Drive 60% Growth in Sales

In the third quarter of 2024, the private property market in Singapore experienced a significant upswing, driven by new project launches and increased buyer optimism. Total new home sales rose from 725 units in the second quarter to 1,160 units in the third quarter, marking a 60% quarter-on-quarter increase. This growth was largely driven by a surge in sales in the Rest of Central Region (RCR) and Outside Central Region (OCR). OCR saw the highest rise, with sales increasing by 72.7%, from 414 units in 2Q2024 to 715 units in 3Q2024. Similarly, RCR sales rose by 70%, reflecting a strong preference for suburban and strategically located properties.

Strategic launches, such as 8@BT, Kassia, and Sora, played a crucial role in driving sales. These projects offered attractive features and pricing, appealing to both homebuyers and investors. Kassia and Sora were among the top-selling projects in OCR, with median prices of $2,052 and $2,153 per square foot (psf), respectively. In the RCR, Pinetree Hill led sales with 88 units sold at a median price of $2,499 psf, highlighting the demand for well-positioned properties offering value for money.

The private property price index, however, showed a slight moderation of -0.7% in 3Q2024, compared to a 0.9% increase in the previous quarter. This decline was primarily attributed to a reduction in high-value transactions, particularly in the Core Central Region (CCR), where fewer properties priced at $10 million or above were sold. Overall, private property prices for the first nine months of 2024 increased by 1.6%, compared to a 3.9% increase during the same period in 2023.

Private resale transactions also showed positive growth, with a 1.5% increase quarter-on-quarter in 3Q2024. A total of 3,860 units were transacted, up from 3,802 units in 2Q2024. For the first nine months of 2024, resale transactions reached 10,351 units, a 21.8% year-on-year increase compared to 2023. This growth has been largely supported by HDB upgraders, who accounted for a significant portion of the transactions. The number of HDB upgraders in the private resale market increased by 20.1% year-on-year, reflecting continued interest in upgrading to private properties despite broader market uncertainties.

Looking ahead, new project launches and a favorable interest rate environment are expected to drive a strong finish for the private home sales market in 2024. The Federal Reserve’s interest rate cuts have improved buyer sentiment, leading to a renewed confidence in property investment. This optimism was evident in the success of the Norwood Grand project, which sold 84% of its units during its launch weekend. If interest rates continue to fall, affordability will improve, potentially boosting demand further.

Click

here

for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics 

  

Email:

mohan@sri.com.sg

  

Property Insight
25 Oct 2024
Tampines Street 95 Executive Condominium Site Attracts Strong Developer Interest

The tender for the Executive Condominium (EC) site at Tampines Street 95 saw Sim Lian Land Pte Ltd and Sim Lian Development Pte Ltd emerging as the top bidders, offering $465.0 million, which translates to $768 per square foot per plot ratio (psf ppr). The second-highest bid of $457.5 million, equivalent to $756 psf ppr, came from a consortium involving SNC2 Realty Pte. Ltd., Apex Asia Alpha Investment Two Pte. Ltd., Kay Lim Realty Pte. Ltd., and Heeton Homes Pte. Ltd. This marginal difference of 1.6% between the top two bids underscores the competitive nature of the tender, indicating the strong interest from developers in securing a foothold in this desirable location.

The Tampines Street 95 EC site is strategically located near the Tampines West MRT station, providing excellent connectivity for both residents and businesses. Additionally, it is close to major shopping destinations such as Tampines Mall, Tampines 1, and Century Square, which offer a variety of retail, dining, and entertainment options. The site is expected to benefit from the amenities of a recently closed mixed-use Government Land Sale (GLS) site, which is likely to be launched and completed before the EC project.

An analysis of the new EC sales in the Tampines Planning Area shows median unit prices were around the $1,500 psf mark in the first three quarters of 2024. This trend reflects sustained demand for ECs in Tampines due to the area's established amenities, connectivity, and overall appeal. The data also indicates that buyers are confident in the long-term value of ECs in the area.

The overall transaction data for new ECs in the first nine months of 2024 reveals that 51% of units sold were priced at $1,500 psf and above, reflecting a growing willingness among buyers to invest in higher price points. This trend underscores the robust demand for well-located ECs, even as price levels increase. Buyers continue to prioritize strategic positioning, lifestyle amenities, and the unique attributes of ECs as a hybrid between public and private housing.

The popularity of ECs can be attributed to their appeal as a gateway to the private residential market for HDB upgraders. The increase in demand for higher-priced units also reflects buyers' confidence in the long-term value appreciation of ECs. Despite rising prices, ECs remain attractive to HDB upgraders and first-time buyers who value their strategic location, comprehensive amenities, and potential for long-term investment growth.

Considering these demand dynamics, it is expected that future EC projects will continue to launch at comparable or slightly higher prices, particularly if they are situated in highly desirable locations

In conclusion, the competitive bidding for the Tampines Street 95 EC site, combined with the sustained demand for ECs in the Tampines Planning Area, highlights the appeal of this location for both developers and buyers. The strategic positioning, connectivity, and amenities make ECs an attractive option, with buyers showing a growing interest in higher price points, driven by the long-term value these developments are expected to provide.

 

Click

here

for the full report   

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

Email: mohan@sri.com.sg