Singapore Home Sales Surge to Decade-High in November 2024: What’s Next?

In November 2024, Singapore's property market experienced a surge in sales, marking the highest figures in over a decade. According to data released by the Urban Redevelopment Authority (URA), developers sold 2,557 new private homes, the most for any single month since March 2013. This surge in sales not only highlights a recovery in the housing sector but also raises concerns about potential government interventions to curb the boom. The resurgence comes on the back of multiple mass-market project launches, increased buyer activity, and favorable borrowing conditions. The government's response to this surge will likely include further housing measures aimed at addressing rising home prices and affordability issues.

In November, private home sales saw a remarkable 246.5% increase compared to the 738 units sold in October 2024. Excluding executive condominiums (ECs), a total of 2,557 private homes were sold in November. When ECs are included, the figure rises to 2,891 units, significantly surpassing the 800 units sold and 970 units launched in the same month in 2023. This surge reflects a dramatic shift in the housing market, which had been subdued earlier in the year. Developers launched 3,375 units in November, including several high-profile projects. The wave of new launches, combined with declining borrowing costs and pent-up demand, fueled this spike in sales.

This boom in sales has renewed speculation that the Singaporean government will implement further curbs on the property market to address rising home prices and ensure housing remains affordable for Singaporeans. The government has already taken steps to cool the housing market in recent years, including raising stamp duties for foreign buyers in 2023. However, the market's resilience and the rapid pace of sales are now raising concerns that additional measures may be necessary to prevent further price inflation.

The surge in private home sales in Singapore comes at a time when the country is facing a broader housing affordability issue, especially in the rental market. According to recent reports, Singapore has emerged as the most expensive city for renters globally, with a one-bedroom apartment now costing an average of S$3,636 per month. The city's growing population, coupled with a limited supply of housing, has led to increased competition in the rental market, particularly among expatriates who do not have access to subsidized Housing Development Board (HDB) flats.

Looking ahead, analysts are closely watching the government's actions and the broader economic environment. The Singaporean government has already committed to increasing land supply for private homes, with plans to offer sites for about 8,505 private homes in the first half of 2025. However, with strong demand continuing to outpace supply, it remains to be seen whether these measures will be sufficient to cool the market.

​The surge in Singapore's home sales in November 2024 underscores the strength of the country's property market recovery, fueled by pent-up demand, lower borrowing costs, and several large-scale project launches. However, this resurgence has raised concerns about affordability, with the government likely to respond with further measures aimed at cooling the market. As the situation evolves, both developers and buyers will need to remain cautious, balancing the current optimism with the potential for government intervention in the months ahead. With the continued rise in rental costs and broader housing affordability issues, Singapore faces significant challenges in ensuring that housing remains accessible for all its residents.