More and more developers are expected to complete their projects these next few quarters. As exciting as it may seem for their future residents, several companies are still bothered about their unsold units from their early development launches. In a report from Singapore Business Review, they admit that it would take a lot of time before they can clear out their inventory and completely sell the remaining units from their previous projects.
Savills’ report said that it would probably take more than 12 years before their unsold units have their respective owners. This would be the case if there will be no more changes in the Government Land Sales in the near future and assuming that the average monthly sales in the Core Central Region from January to May 2015 will still be the same as well.
However, it will definitely take much longer for developments located at the suburbs to clear out their inventory of unsold units since the program of Government Land Sales are giving more attention to the developments situated in the Rest of Central Region and in the Outside Central Region.
Considering these details, the Savills report also mentioned that if the amount needed to obtain a unit will increase twice as much in the following years, it would probably take another five more years before these developments will completely sell the rest of their units.
Despite the fact that the demand for developments and residential units will increase sooner or later, Savills believed that the real estate market would not yet go back to its normal status. As a matter of fact, local buyers still don’t find the small residential units affordable enough for them to purchase a unit of them own. Various measures affecting the real estate industry are making it hard for them to acquire smaller units that are within their means.
On the other hand, units with bigger spaces also come with a huge price tag as well particularly the projects located in the Core Central Region such as the Whitley Residences or the Gramercy Park. Some high-end development projects are not selling like hotcakes and might take a little more time before these developers can completely dispose of these unsold units.