US rate cut lifts buyer sentiment in Singapore

Experts point to 8@BT take-up as evidence of the rate cut's effect.

Real estate experts believe the US Federal Reserve rate cut has boosted sentiment among property buyers in Singapore, encouraging those previously hesitant to enter the market.

The healthy take-up at 8@BT, the first private residential project launched for sale after the lunar 7th Month (Ghost Month), serves as evidence of the cut's effect, according to PropNex.

"The positive response at 8@BT could help to create more buzz on the ground, and hopefully, developers’ sales—which have been relatively muted this year—can kick into a higher gear as we enter the final quarter of 2024," PropNex commented.

Overall, Huttons reported that sentiment in the new homes market improved in Q3 2024.

"Sales for September are estimated to be between 300 and 350 units. Together with the estimated 779 units sold in July and August, new sales in 3Q 2024 are likely to be between 1,000 and 1,100 units. This is much higher than 2Q 2024's 725 units and almost on par with 1Q 2024's 1,164 units," Huttons noted.

More than the rate cuts, real estate experts believe that 8@BT's success was due to its attractive location.

"Historically, demand for units in the Bukit Timah (Beauty World) area has been robust. The Linq @ Beauty World sold more than 90% of its units, and over 70% of The Reserve Residences were sold on the first day of launch," Huttons commented.

PropNex echoed this sentiment, adding that the development is also just a minute’s walk from the Beauty World MRT station (Downtown Line), and close to Beauty World Plaza, Beauty World Centre, Bukit Timah Shopping Centre, and eateries at Cheong Chin Nam Road, among others.