Due to the stagnant property market, it may take around five years for the market to fully absorb the almost 46,000 private residential units which will be completed by 2020.
Speaking at the Real Estate Developers’ Association of Singapore (REDAS)’s Mid-Autumn Festival lunch yesterday, REDAS president Augustine Tan noted that developers are now developing a more “prudent approach” when buying land for development.
He added that the market has been stunned by the cooling measures imposed by the Government on July 6:
“In February this year, … I spoke about the improved sentiments and brighter forecasts for the broader economy and the property market. … Six months on, the market saw an about turn. This time in reverse course.”
Mr Tan also said that rentals of private residential private properties are expected to record moderate growth, as vacancies remain high and new completions are added to the total stock.
According to the Urban Redevelopment Authority’s second quarter data, there are currently 27,000 unsold units out of a pipeline supply of 45,000 uncompleted private residential units.
An estimated 8,500 to 9,000 private home sales from developers for the whole of this year — a 15 to 20 per cent drop compared to last year.