How bad residential oversupply can get

[princess_morbucks]

http://sbr.com.sg/sites/default/files/imagecache/300x170/news/fig2.JPG

There'll be 168,200 units by 2014-2016.
According to Phillip Capital, over the next 3 years, it would be an oversupply situation within the Singapore residential segment. Inclusive of both public and private sectors, they project the physical completion of 168,200 residential units from 2014 to 2016.
In contrast, they look into the underlying ‘real’ demand that stems from population growth.
Here's more from Phillip Capital:
We estimate that the increase in population will provide take-up of c. 71,400 residential units. Beside the local government intervention in the aforementioned portion, the oversupply situation will be a major factor in the gloomy outlook for residential.
The mass market continues the trend of having lesser individuals per residential units. Currently, based on the total residents and the total residential units, the ratio stands at an estimated 4.07 individuals per unit.
We do acknowledge that this ratio is exhibiting a downwards trend. However, for the market to absorb the upcoming 3-yr supply, we would need this ratio to lower a further 7%, at 3.78 individual per unit.
We do foresee residents continuing to favor having fewer individuals under a single roof. Nonetheless, with the aging population and the affordability issues, the ratio should not decrease much further. Within these 3 years, this factor will not substantially negate the oversupply effects.
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[radha08]

great planning again:doh:

[star]

Be prepare for surge in property prices in sg. When all the world property get expensive Singapore become very attractive.

[indomie]

What will negate the oversupply effects is the emergence of MM units. MM units is a recent phenomenon. Building more in smaller size doesn't constitute an oversupply. In fact MM is very different different in nature than traditional dwellings. Its is more as a storage of wealth. It is the most liquid form of property investment.

[minority]

great planning again:doh:


people want price to crash. So they get what they asked for.

[Kelonguni]

What will negate the oversupply effects is the emergence of MM units. MM units is a recent phenomenon. Building more in smaller size does not constitute an oversupply. In fact MM is very different different in nature than traditional dwellings. Its is more as a storage of wealth. It is the most liquid form of property investment.

MM is the best way to lower individuals per unit.

When they reported the excess, they failed to show how many percent are MMs. The maximum comfortable number in MM ranges from 2-3. It will serve a major role in reducing individual per unit.

[Shanhz]

indonesian presidential election coming. instability in thailand.

any impact of fund flows to sgp? will demand for ppty increase?

[minority]

indonesian presidential election coming. instability in thailand.

any impact of fund flows to sgp? will demand for ppty increase?

not much impact.What we need is China effect.

[mcmlxxvi]

I said this before and i will say it again.

No use going against natural evolution of dwelling patterns of mankind.

Small homes are here to stay.