Private home sales fall 1.3% in 9M 2024 as buyers await new projects

The new projects could boost private home transactions in Q4, said experts.

Sellers holding firm on asking prices and buyers taking time to evaluate options led to a 1.3% YoY decline in private residential sales in the first nine months of 2024 (9M 2024), according to Cushman & Wakefield.

PropNex expressed a similar view, saying potential buyers remain price-sensitive.

“We believe many buyers are waiting for new project launches, as there have been few launches this year,” PropNex added.

Prices, however, declined by 0.7% QoQ in Q3, marking the biggest quarterly drop since Q1 2020, when prices fell 1%, OrangeTee reported.

While prices rose 1.6% in the first three quarters of 2024, OrangeTee said this growth was significantly slower than the 3.9% increase in the same period in 2023 and 8.2% growth in the first three quarters of 2022.

Cushman and Wakefield expect private home prices to grow by 1%-4% in 2024, driven by resilient upgrading demand amid low unemployment and strong household balance sheets.

Knight Frank, meanwhile, expects private home prices to close in 2024 at the lower end of its 3% to 5% projection.

“With a few months remaining in 2024, developers could launch anticipated projects that may drive the index back into positive territory,” said Knight Frank.

These new projects, including Norwood Grand, Chuan Park, Emerald of Katong, Nava Grove, and Union Square Residences, could also boost private home transactions in the last quarter of the year, said OrangeTee.

“These large suburban developments will provide more housing options for buyers. Sales volume for new homes is expected to rise in the second half of 2024, exceeding the first half. The new project launches may also impact the secondary market, as some buyers may consider nearby lower-priced resale homes,” OrangeTee added.