Arcachon
23-10-18, 19:46
4) There is no oversupply in the market
https://sg.tepcdn.com/public/usr/1js56c/d2e4f7-EC-supply-limited-1-.png
Collective sales deals that have been concluded since 2016 could generate an estimated 25,000 new homes from 2021 onwards, says Tricia Song, Colliers International head of research for Singapore.
Coupled with the moderate Government land sales sites over the past two years, the upcoming supply of new units in the medium term does not look excessive as long as economic fundamentals remain sound.
Based on Colliers’ research, home supply completions will taper off sharply from 2018 - 2021 to an annual average of 8,104 units from the 2014 – 2017 annual average of 18,731 units, and the 10-year average of 12,948 units.
“While this number could rise sharply beyond 2022 due to the recent collective sale fever, it does not appear excessive if spread over a longer term. We expect annual average completions of 10,318 units over 2018 – 2022,” says Colliers’ Song.
https://www.edgeprop.sg/property-news/market-overreacting-new-property-cooling-measures
https://sg.tepcdn.com/public/usr/1js56c/a30d66-EC-supply-limited-2-.png
She concludes that given that developers have exercised more restraint in bidding for collective sale sites in recent months, the launch pipeline should remain fairly sustainable over the next three to four years, and developers will not necessarily need to embark on deep price cuts to sell units especially if the new launches are paced out evenly.
https://sg.tepcdn.com/public/usr/1js56c/d2e4f7-EC-supply-limited-1-.png
Collective sales deals that have been concluded since 2016 could generate an estimated 25,000 new homes from 2021 onwards, says Tricia Song, Colliers International head of research for Singapore.
Coupled with the moderate Government land sales sites over the past two years, the upcoming supply of new units in the medium term does not look excessive as long as economic fundamentals remain sound.
Based on Colliers’ research, home supply completions will taper off sharply from 2018 - 2021 to an annual average of 8,104 units from the 2014 – 2017 annual average of 18,731 units, and the 10-year average of 12,948 units.
“While this number could rise sharply beyond 2022 due to the recent collective sale fever, it does not appear excessive if spread over a longer term. We expect annual average completions of 10,318 units over 2018 – 2022,” says Colliers’ Song.
https://www.edgeprop.sg/property-news/market-overreacting-new-property-cooling-measures
https://sg.tepcdn.com/public/usr/1js56c/a30d66-EC-supply-limited-2-.png
She concludes that given that developers have exercised more restraint in bidding for collective sale sites in recent months, the launch pipeline should remain fairly sustainable over the next three to four years, and developers will not necessarily need to embark on deep price cuts to sell units especially if the new launches are paced out evenly.