Monthly Developer Sales July 2024

There were two newly launched projects in July 2024, comprising Sora at Yuan Ching Road (Jurong East) and Kassia in Flora Drive (Pasir Ris). These two projects sold the most number of units during the month.

Kassia was the top selling project during the month with 154 sales representing 55.8% of the total number of units at the freehold project, while Sora was the next highest selling project with 103 sales or 23.4% of all units. In July, there was a total of 571 new sales (excluding executive condominiums (ECs)), the second highest monthly total in 2024 to-date, after March’s high of 718 units.

From January to July 2024, the monthly average has been muted at 357 units, compared to the monthly average of 556 in 2023, 616 in 2022 and 1,114 in 2021. Even in the pandemic-led recession year of 2020 when movement restrictions were imposed, the monthly average was 861 units.

The impasse between buyers and developers this year remains, as take up at project launches generally trends between 20% and 30% most times on launch weekends, every once in a while increasing beyond 50% when a project has some compelling appeal factor(s). For example, Kassia that launched in July being the only freehold project of more than 100 units in the Outside Central Region (OCR) in an era where there has been limited freehold launches of larger projects (100 units or more) in suburban locations.   

Knight Frank maintains that the projected total for 2024 will be between 4,000 and 6,000 units, a downward revision from the 7,000 and 9,000 primary transactions originally anticipated, even if sales momentum were to pick up in the remaining months of 2024.

However, there is reason to be hopeful. Compared to any other time this year, the likelihood of interest rate cuts is now more certain than ever. An interest rate cut, or cuts in 2024, will create some psychological stimulus that will tip the decision-making balance of potential homebuyers who are presently sitting on the fence towards making a purchase.

Demand for private homes remains supported in Singapore, even though homebuyers are currently held in check by prevailing uncertainty, elevated interest rates, elevated private home prices and cooling measures.