12/19/2017 1:29:44 PM
|written By : Team India Se|
It is “far too early” to worry about a possible oversupply of private homes due to a surge in en bloc deals, reported Today quoting a brokerage and investment bank report issued on December 18.
The report by Maybank Kim Eng analyst Derrick Heng pointed out that the redeveloped properties from the collective sales would not come on stream till 2020.
Even after those properties come on stream, the average net supply will “still not be excessive”, at slightly above 11,000 units a year, the report said. This figure is significantly lower than the 19,500 units that were added annually between 2014 and last year, the report noted.
This follows a Monetary Authority of Singapore (MAS) report in November which said the supply of private housing would increase significantly over the next few years, with units up for sale more than doubling in the same period.
The MAS report urged developers, potential buyers and banks to “proceed cautiously” warning against a possible oversupply in the property market.
The Ministry of National Developmen said there was a “large potential supply of around 20,000 units” from awarded en bloc sales and government land sales sites that had not yet been granted planning approval, on top of about 18,000 unsold units that already have planning approval.
There are also more than 30,000 existing private housing units that remain vacant, the ministry said.