Report: Up To 29 New Launches and 14,200 Units will be offered

Report: Up To 29 New Launches and 14,200 Units will be offered

According to a report from List Sotheby’s International Realty, Singapore, between the second and fourth quarters of this year, approximately 14,200 new units will be supplied by the large number of residential projects could be launched (up to 29 private residential projects). It means that the housing market is at the concern and overheating.

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Based on the assumption of a period of nine to 12 months for projects to be built on GLS sites to obtain all planning approvals before launching, and a longer period of 15 to 18 months for collective sale sites, the report analysed recent en bloc sales and Government Land Sales (GLS) sites. 29 sites acquired by developers from mid-2016 to August 2017 that could be launched later this year, the property consultancy identified.

At the Core Central Region, there are six sites including 403 units to sell , 7,327 units is the number that 13 sites in the Rest of Central Region want to sell, while 10 sites in the Outside Central Region could supply 6,460 units. While the volume may seem high, List Sotheby’s believes it is not excessive.

After the sub-prime crisis in 2008, during the three years of recovery (2009 to 2011), developers launched an average of 15,400 units per year. Besides that, the unsold inventory under construction (launched and unsold, unlaunched projects with planning approvals) held by developers stood at around 35,000 units, based on Urban Redevelopment Authority statistics.

However, there was a significant increase in demand in 2017, the unsold inventory decreased to 8,900 units by the end of the year. Launching about 15,000 units would not seem too ambitious for three reasons, it said. “Firstly, the market is now on recovery tract, similar to the period of 2009 – 2011. Secondly, developers had sold most of the units in existing projects and reduced the unsold inventory to a manageable number. Thirdly, developers will also likely pace their launches depending on their business strategies."

Moreover, in the near future, the current en bloc frenzy is expected to slow down and as most of the developers have already built up a substantial land bank. “As the rate of acquiring sites slows down, it will allow time for developers to recalibrate the estimated supply by phasing the launches,” it noted. The report added that low interest rates and liquidity will make the demand will be increased continuously. “With the cooling measures still in place, end-users who form the underlying demand and investors holding a longer-term view of the market will make up the total demand.”

Many developments will be launched this year. That is the good signal for the real estate market. One of the noticeable new launch project is Riverfront Resident @ HougangRiverfront Resident is the newest condo development developed by Oxley-Lian Beng Pte Ltd. This development is located at Hougang Ave 7, District 19, Singapore with many amenities nearby. Please take a look at Location to know more about this ideal location and kindly contact us if you have any concern.


Adapted by PropertyGuru, May 2, 2018