Monthly Developer Sales January 2024

Based on the monthly developers’ sales data from the Urban Redevelopment Authority (URA), 281 homes (excluding Executive Condominiums (ECs)) were sold by developers in January 2024 with two new launches being the projects, Hillhaven and The Arkady at Boon Keng.

This is the quietest January since 2009 when 108 new homes were sold by developers. Adding in ECs, the new launch with the highest sales for the month was Lumina Grand in Bukit Batok West Avenue 5 with 271 units sold. EC sales totalled 307 units bringing the overall total for January 2024 to 588 (both private non-landed units and ECs). The higher volume of ECs sold in the month contrasts the more affordable levels of ECs against that of private non-landed homes.

Although sales momentum might take a while to warm up in 2024, activity is expected to return to the private home market, especially with economic growth improving in the last quarter of 2023. Year 2023 was mostly characterised by a sluggish economy fraught with uncertainty, with GDP growth at 1.1% for the entire year. However, with a more sanguine government forecast of between 1% and 3% in 2024, there is room for some optimism.

Demand for private housing is likely to be conservative in early 2024. However, the first sign of possible interest rate cuts expected during the course of the year might just be the catalyst to usher homebuyer momentum back into the market. After all, employment levels remain healthy with overall affluence unaffected despite the tepid economy in 2023.

In 2024, new sales are likely to range between 7,000 and 9,000, and there might be 15,000 to 18,000 private home sales overall for the whole year 2024, inclusive of the secondary market. Prices in the new launch market will remain elevated due to committed land and construction costs, and this could result in two-tier pricing with the gap between the primary and secondary market widening.

Overall, private home prices are projected to grow by a more moderate 3% to 5%, against the 6.8% increase in 2023.