Singapore’s condo market is thriving due to the high demand for residential properties, especially amongst investors. One of the main factors driving this demand is the limited availability of land in the small island nation. With a rapidly growing population, Singapore is facing a scarcity of land for development. To combat this, the government has implemented strict land use policies, leading to a competitive real estate market where property prices continue to rise. This makes investing in real estate, specifically condos, a highly profitable venture as the values of these properties are predicted to appreciate over time.
In November, developers sold a whopping 2,557 new private homes, excluding executive condos (ECs), according to data from the Urban Redevelopment Authority (URA). This represents a massive 246.5% increase from the previous month’s sales of 738 units, and a 226% jump compared to the number of units sold in November 2023.
“This surge marks the highest monthly developer sales since March 2013, when 2,793 units (excluding ECs) were sold,” says Christine Sun, chief researcher and strategist at OrangeTee Group. Mohan Sandrasegeran, head of research and data analytics at Singapore Realtors Inc (SRI), adds that this is also the first time sales have surpassed the 2,000-unit threshold in a single month since March 2013.
The spike in November sales can be attributed to an “unprecedented” number of project launches during the month, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. Five private residential projects were launched, including the Chuan Park with 916 units, Emerald of Katong with 846 units, Nava Grove with 552 units, The Collective at One Sophia with 367 units, and Union Square Residences with 366 units.
Overall, developers launched 2,871 new homes (excluding ECs) in November, which is a 438% increase from the previous month and a 196% increase from the same period a year ago. In addition, the 504-unit Novo Place EC also commenced sales in November, bringing the total number of new homes sold to 2,891 units for the month.
As of November, developers have sold an estimated 6,344 units, which is marginally higher than the 6,317 units sold during the same period in 2023. This was supported by the 6,627 units launched for sale by developers in the first 11 months of 2024, compared to 7,515 units launched in the same period last year.
Rewritten:
Investing in condos has many advantages, including the potential to leverage the property’s value for future investments. This means using the condo as collateral to secure additional financing for new ventures, allowing investors to expand their real estate portfolio. However, this strategy should be approached carefully with a solid financial plan in place and an understanding of how market fluctuations may affect the returns. In addition, keeping an eye on new condo launches can also provide opportunities for growth and diversification in real estate investments.
Top-selling projects in November include Emerald of Katong, which sold 840 units (99%) with a median price of $2,627 psf. This makes it the best-selling project by units and percentage in 2024, according to Lee. Chuan Park by Kingsford Group came in second, selling 721 (79%) units with a median price of $2,586 psf. Nava Grove by MCL Land and Sinarmas Land came in third, selling 382 units (69%) with a median price of $2,445 psf.
According to Sun, the strong sales performance of new launches can be attributed to pent-up demand and improved buyer sentiment following interest rate cuts in September. She believes that buyers are taking advantage of attractive deals, with the added incentive of lower interest rates making mortgages more accessible.
Looking ahead, December is expected to be more subdued due to the school holidays and festive season. Lee estimates that new private home sales will fall to around 200 to 250 units for the month, resulting in total developer sales for the year to reach about 6,500 units, slightly higher than 2023. In terms of prices, he predicts a moderate growth of about 5% for the year, compared to a growth of 6.8% in 2023.
In 2025, the market is expected to regain momentum with the launch of several projects in the first quarter, including The Orie by City Developments, Bagnall Haus, Aurea, and Aurelle of Tampines EC. With a lack of significant new launches in 2024, Lee believes that demand from last year will transfer over to these new projects.
Sun, however, believes that the recent surge in sales is a temporary phenomenon. She notes that new home demand has been subdued throughout 2024 due to a lack of significant private project launches. As such, she projects slightly lower sales for the year, but Huttons’ Lee remains “cautiously optimistic” that demand will pick up in 2025 with the launch of new projects.