The Prime resale market remains active, complementing new project sales in the primary market

• Improved interest rates and economic conditions boosted market sentiment in Q4 2024. New home sales rose, driven by The Collective at One Sophia’s debut and select ongoing projects. This vigour spilled over and sustained steady resale market activity.
• Since its introduction in November 2024, The Collective at One Sophia has sold 66 of its 367 units. New sales in Q4 2024 were further bolstered by continued interest in projects such as 19 Nassim, Klimt Cairnhill and Hill House.

Vacancy stable as physical occupation keeps pace with the surge in Prime home completions in Q4 2024

• Four Prime non-landed projects received Temporary Occupation Permits (TOPs) in Q4 2024.
• Despite a significant rise in new completions in Q4 2024, Prime home vacancy rates remained stable. The continued absorption of previously completed units diluted the impact of new additions, keeping vacancy levels in check.

Prime home prices and rents continue to recover in Q4 2024 following last quarter’s turnaround

• Following previous quarter’s rebound, Prime non-landed home prices rose further in Q4 2024. Growth was driven by steady demand from local buyers, while foreign purchasers and investors were held back by the high Additional Buyer’s Stamp Duty (ABSD).
• Prime non-landed home rents rose in Q4 2024, extending last quarter’s recovery. This reflects economic and employment improvements, alongside a lower rental base. However, an influx of new completions has tempered overall rental gains.

Outlook: Prime home prices to be buoyed by local demand; leasing outlook continues to improve

• Near-term Prime home prices should find support in local demand, driven by aspirations, improved lending costs (albeit still high), and robust household liquidity. However, ongoing cooling measures are expected to deter investors and foreign buyers.
• The recovery in Prime rents is projected to extend into 2025, underpinned by continued economic and employment growth, and a forecasted fall in Prime vacancy rates. This trajectory is expected to be measured but steady.