There has been upward trajectory in supply of land for new private housing in the list confirmed recently of the 2H2016 of the Government Land Sales (GLS). The list comprises of 11 reserve list sites and 4 sites for sale by the government. The number of residential units could increase to 7,550 up from 7,420 units in the first half of the year. Despite of this positive news, there has been no release of new sites for the purpose of Executive Condominium development.
"It is the first time ever, from 2008 that no Executive Condominium site was present on the list, something which has been brought about as a result of oversupply concerns within the market environment, “said Credit Suisse.
In one financial report, it was revealed that, of the 13 Executive Condominiums projects launched, only a paltry 50 percent of the units have been sold.
On the other hand, Orange Tee noted that by the end of April 2016, a total of 4,010 EC units had not been sold.
The property agency report said that if Sumang Walk Executive Condominium site remains unchanged, and developers waiting period does not change, then the reducing EC land supply could reduce EC launches in the whole of 2017 and the better part of first half of 2018.
"To further add gloom to the EC future, two Executive Condominium projects, Yio Chu Kang Rd and Choa Chu Kang Avenue 5 are set to be unveiled next year and only Anchorvale Crescent project will be launched in 2018," OrangeTee said.
In one of the blog posts, the Minister for National Development Mr. Lawrence Wong reaffirmed the government’s position of considering several factors when determining the land allocation for 2H 2016.
“We are increasingly cognizant of the fact that over supply in an unstable market environment can bring about a sharp reduction in prices. However, lack of constant supply can cause future shortages and an increase in housing prices if there is an upsurge in demand," said Wong.
“ In light of this, the government will keep a close eye on the market, and try to find out the proper balance to make sure that housing prices remain sustainable and that the property market is stable and efficient,” added the minister.