Recently, the Singapore government has released lands for sale in the property market, even though there is still plenty of supply in that market. The move has affected the property investors in the country.
A 223, 303 sq. ft. plot of 99 years lease hold was released by the government. The said land is located around the Thomson road, just opposite the island golf course of the Singapore Island Country Club.
Consequently, the question regarding the government’s wrong timing again arises. Mr. Mah has been tracking the record of the lands that were release for sale at the peak of the hot property market. Its effect in the end is that the sale of the lands fetches the highest prices for the government. The property market in the country suffers downfall when the government releases lands for sale.
As for the demand in private housing in Singapore, a remaining of 62,350 of private condo units from the second quarter of 2009 are still there in the pipeline even up to the year 2013. During the peak season in the property market, around 14,000 private housing units were consumed. In 2008, about 3500 private housing units were also consumed. The average private housing that was consumed every year is around 8,000 units, which means that the country still has a supply for 6 up to 8 years. This data only shows that there is no supply shortage in the property market. Any actual or perceived shortage at present is falsely created by the property developers in Singapore in order to inflate the property market.
To do this, developers reschedule their properties to a much later date and squeeze up the present supply; therefore, a demand is created. When the momentum is finally built, the stocks can now be moved in the pipeline.