Monthly Developer Sales August 2024

There were no newly launched projects in August 2024 as developers appeared to shun introducing new projects during the Hungry Ghost month and also in a period when demand for new product has been quiet in general and very selective in specific. Instead, developers concentrated on moving existing stock in projects that have already been launched.

In July, there was a total of 244 new sales (excluding executive condominiums (ECs)), similar to May and and June’s monthly count of 223 and 228 units respectively. In the eight month of 2024 thus far, a total of four months had less than 300 developer sales each. A very stark contrast to 2021, when not a single month was below 300 new sales with the lowest monthly count in that year being 645 units in February 2021. Compared to the same eight-month period a year ago in 2023, new project sales are about 49% down.

From January to August 2024, the monthly average remains muted at 338 units, substantially less when compared to the monthly average of previous years (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. 

Even in 2024 alone, the monthly average in the first eight months is lower than the average monthly volume of 392 units in the first quarter of this year (January to March 2024). 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, not everything is bleak and there is reason to be hopeful. The likelihood of interest rate cuts is now eminent. An interest rate cut, or cuts in the remainder of 2024, will create the psychological stimulus that will tip the decision-making balance of potential homebuyers who are presently sitting on the fence. 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.

However, until interest rate cuts are announced, translating to lowered mortgage instalments in real terms for the buyer, more of the same muted buyer response can be expected for the rest of 2024.