2024 new home sales expected to hit lowest levels since 2008

SINGAPORE: The real estate market in 2024 is on track to record the lowest level of new home sales since 2008, with a significant year-over-year (YoY) decline. Data from the latest reports reveal a steep 48.6% drop in year-to-date sales volume compared to the same period in 2023. This sharp decrease could suggest that the housing market is experiencing a major slowdown.

In August alone, private new home sales fell dramatically, plunging 63.6% month-over-month (MoM) and 47.2% YoY, with only 208 units sold. This marked one of the worst performances for the month in recent history.

These dismal figures have pushed the year-to-date total for 2024 to just 2,668 units, down from 5,190 during the same period in the previous year.

CBRE, a leading real estate firm, told Singapore Business Review (SBR) that it projects that the total number of new homes sold in 2024 will range between 5,000 and 5,500 units, significantly lower than the 6,241 units sold in 2023. Should this forecast hold, 2024 would see the weakest annual performance in new home sales in over 15 years.

Despite the negative trends, experts remain cautiously optimistic about a potential market recovery later in the year. CBRE points to pent-up demand and upcoming attractive property launches as possible catalysts for improvement. The real estate firm suggests that if interest rates are reduced and the economic outlook improves, the market could experience a rebound.

PropNex, another key player in the industry, echoed these sentiments, noting that a rate cut could help bolster buyer confidence. “A rate cut could help lift sentiment somewhat, and could also potentially encourage some property buyers on the sidelines to return to the market,” a spokesperson for PropNex told SBR.

The firm also cited an improving economic outlook and a tight labour market as positive factors that could support the property segment.

“All things considered, we remain relatively optimistic about new home sales in the last few months of 2024,” PropNex added to SBR, signaling a glimmer of hope for an otherwise challenging year for the housing sector.