• November 2024 marked a turning point, as Singapore home sales surged to a record-breaking monthly figure in over a decade.
  • According to data released by Singapore’s Urban Redevelopment Authority (URA), developers sold 2,557 private homes in November, a staggering 226.1% year-on-year increase, which also marks the highest sales volume since March 2013, when 2,793 units were sold.

KUALA LUMPUR (Dec 18): As Singapore’s property market rebounds from a prolonged lull, Hong Leong Investment Bank (HLIB) said it is “too early to worry” and  anticipate any government cooling measures ahead of an election year.

It remains premature to anticipate government intervention as the market is only starting to recover after a period of stagnation, said HLIB, who noted that the government is likely to wait for more data points to assess whether the market is genuinely overheating.

Private home prices, which declined -0.7% quarter-on-quarter in the third quarter of this year (3Q2024), are expected to show signs of a rebound in 4Q2024, with early indicators, such as developers raising launch prices in response to overwhelming demand, suggesting upward price momentum, HLIB added.

Further, the US Federal Reserve is expected to announce another rate cut on Dec 19, with the CME FedWatch Tool indicating a 97.1% probability of a 25 basis-point reduction, which is likely to further lower Singapore’s three-month Singapore Overnight Rate Average (SORA), the house noted.

HLIB said that for Malaysian developers like IOI Properties Group Bhd (KL:IOIPG), whose Singapore debt is tied to floating rates based on SORA, this trend translates into reduced borrowing costs and improved financial flexibility.

HLIB, which kept an “overweight” stance on Singapore’s property market, cited notable Malaysian players like IOI Properties Group, OSK Holdings Bhd (KL:OSK), Sime Darby Property Bhd (KL:SIMEPROP), and Sunway Bhd (KL:SUNWAY) standing to gain from both the rejuvenated market activities and easing financial costs.

November 2024 marked a turning point, as Singapore home sales surged to a record-breaking monthly figure in over a decade.

According to data released by Singapore’s Urban Redevelopment Authority (URA), developers sold 2,557 private homes in November, a staggering 226.1% year-on-year increase, which also marks the highest sales volume since March 2013, when 2,793 units were sold.

The surge was driven by major launches, pent-up demand, and improved affordability, following the Federal Reserve’s September rate cut.

Among standout developments were The Continuum by Sunway-Hoi Hup, which ranked as the fourth best-selling project of the month, with 131 units sold, followed by a spillover demand from the neighbouring Emerald of Katong, which achieved a 99% sell-through rate upon its launch.

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