Singapore Property | Private homes in Singapore are set to increase by 14,200 in this year. The homes are from 29 new developments that are launching this year. The report released by the Singaporean branch of Sotheby’s International Realty. Sotheby’s is a reputed international property list.
The report is based on reviews of land sites sold in the last year and set to launch this year. The sites were sold between mid 2016 and August of last year. Sotheby’s indicated in the report that the market is able to absorb the increase based on how developers time the launches off their various developments.
Reviewed sites include six in the central region’s core, mainly Orchard Road. 13 other sites are in other areas within the central region including Tanjong Rhu. The other 10 out of the 29 sites are in suburbs outside the central region. One of the recently launched development in District 9 is 8 Hullet. Another development, One Draycott, will be launching soon too.
While one may see 14,200 new private homes as many, it is not an unprecedented number. In the 3 years of recovery from 2009 to 2011. An average of 15,400 units was launched yearly during that period. Unsold inventory that was either under construction, unsold or unlaunched was nearly 35,000 units. Due to a pick-up in demand last year, the unsold inventory reduced to 18,900 as at the end of 2017.
Associate director for research as Sotheby’s, Han Huan Mei indicated that developers are likely to pace launches based on their different business strategies. This will help the market digest the additional private homes easily. Developers have also sold most units from previously existing projects.
According to the Sotheby’s report, it should be noted that many developers have been building their land banks over the last 2 years. With rising prices of land, an increasing number of land developers are getting more selective about collective sales.
Low interest rates and liquidity will continue supporting demand. Even while being capped by market cooling measures, demand is likely to rise because those who sold in the latest rounds are looking to replenish their holdings. Buyers are projected to be those who are after better management of their finances to avoid having to pay additional taxes.
View some of the developments launching this year including, mega developments like Riverfront Residences as well as Affinity at Serangoon. If you prefer landed, you may also read on Belgravia Villas Phase 2 as well as Nim Collection first edition.