Private New Home Sales Plunges 92% MoM in December
Wednesday, Jan 15, 2025 10:18 pm ET
4min read 
The private new home sales market experienced a significant downturn in December, with a 92% month-over-month (MoM) decline in transactions. This sharp decrease can be attributed to several factors, including the absence of new launches, the December holiday lull, and the impact of high prices and interest rates on buyer sentiment.
According to data from PropNex Research and URA, only 203 units were sold in December, compared to the 2,560 units transacted in November. This represents the second-lowest monthly sales figure in 2024, just above the 153 units recorded in February. The total number of new homes sold for the whole of 2024 reached 6,560 units, up 2.2% year-over-year (YoY) from 2023's 6,421 units.
The absence of new launches in December played a significant role in the overall sales performance. Developers placed only 20 new units for sale in December, a drastic decrease from the 2,871 units released for sale in November. This is the lowest number of units launched in a month since PropNex started tracking data in 2009.
Regional and market segment trends in new home sales for December revealed a slowdown across all regions and segments. The Outside Central Region (OCR) led monthly sales with 111 units sold, down 88% from November. The Rest of Central Region (RCR) saw 73 new homes sold, down from 1,569 units in November. The Core Central Region (CCR) moved 19 units, down from 98 units in November. The Executive Condominium (EC) segment saw sales fall by 49% to 170 units in December.
Looking ahead, buying appetite is expected to return in Q4 2024 amid lower mortgage rates and attractive new launches. An estimated 12,000 to 14,000 new units could potentially be launched in 2025, nearly twice the 6,647 units in 2024. Attractive projects anticipated in Q1 2025 include The Orie (777 units) at Lorong 1 Toa Payoh, Elta (501 units) at Clementi Avenue 1, and ParkTown Residence (1193 units) at Tampines Avenue 11.
CBRE Research is cautiously optimistic on the private residential market in 2025, forecasting 7,000 to 8,000 new homes to be sold in 2025, an improvement from 2024's 6,560 units. However, buyers are expected to remain selective amid a myriad of new launch options, and attractive developer pricing will remain key to healthy new launch performance.
Private residential prices rose 3.9% in 2024, a moderation from 2023's 6.8% growth. With interest rate cuts of 100bps since September 2024 and likely to continue its downward trajectory, private home prices should continue rising in 2025. Barring an economic recession or reversal of interest rate cuts and additional cooling measures, the private residential market is expected to remain resilient in the coming year.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
