Singapore Property | List Sotheby’s International Realty recently released a report that shows that unsold private residences increased from 18,891 units by December 31, 2017, to 34,467 units a year later, translating to a twofold increase. The new report attributes the significant increase to the move by the Strata Titles Board to allow more en bloc sales.
“About 56 percent (19,425 units) of the total unsold units came from launched or yet to be launched projects. The remaining 44 percent (15,409 units) were not availed for sale because they lacked requirements for sale,” stated the report.
What’s more, the 34,467 unsold units are among the 51,498 units that had already secured planning approvals. These comprised of projects that got some approval from the relevant authorities in the final quarter of 2018 like those situated in Silat Avenue (1,101 units), Sengkang Central (682 units), Sunset Way (648 units), and Holland Road (559 units). The upcoming Treasure at Tampines with 2,203 units and the future Parc Clematis Condo with 1,468 units also formed part of developments with planning approvals.
The report also stated that the private housing market of Singapore was in the initial stages of a new market cycle.
“With a half a year of familiarising with the functioning of new measures, the residential market is set to begin a new cycle. Although the new measures have thrown cold water on the sharp V-shaped increase in home prices that were witnessed from third quarter of 2017 to second quarter of 2018, their goal is to create a moderate U-shaped upsurge that favours all parties in the end.” “We anticipate the upsurge of home prices to float from -2.0 percent to 2.0 percent in 2019. The number of new homes demanded within the same period will be between 9,000 units and 10,000 units, with mega-projects situated in RCR dominating the sales,” added the report. Some of the mega-projects are the Florence Residences and the One Normanton Park.