The analyst also sees momentum for new home sales to continue into 2025 with a slew of attractive launches and strong GDP growth. This year, the analyst sees primary volumes of 9,000 to 10,000 units – 30% to 50% higher y-o-y – due to lower mortgage rates, resilient household balance sheets and a new launch supply of over 13,000 units.
RHB Bank Singapore analyst Vijay Natarajan has upgraded the real estate sector to “overweight” from “neutral” as the residential market looks set to make a comeback in 2025 following a “sharp pick-up” in buying interest seen in new launches in 4Q2024.
During the quarter alone, some 3,500 new homes were sold, which was more than the combined units sold in 9M2024. According to Natarajan, this implies a change in buyer sentiment on the back of easing mortgage costs, healthy labour market and wage growth, as well as pent-up demand from the lack of new launches.
