Several developers said they believe that the recent set of government measures aimed at dampening the demand for HDB flats and private homes will mostly affect mass market homebuyers.
They are also hoping that the new launches, which are mainly for homes in the mid-tier, high-end and luxury segments, will enjoy strong take-up rates.
“I believe that the hardest hit projects will be the mass market ones,” said Lim Yew Soon, managing director of EL Development, in an interview with The Business Times. “For the mid to high-end projects, the impact will be somewhat lesser.”
Analysts and developers said the large number of future mid-tier and high-end projects is not a reaction to the recent batch of property measures. Instead, having released many projects aimed at upgraders, several property groups are left with pending mid-tier and high-end project launches.
Many developers who acquired mass markets sites released them within nine to 12 months, with some even launching their projects in six to seven months to ride on the exuberant upgrader market, said Joseph Tan, executive director of CBRE.
“The fourth quarter will see more of the mid to high-end launches,” said Mr. Tan.
One developer added: “Most developers rushed to launch mass market projects last year when that segment of the market was very hot, so there are mostly mid-tier and high-end projects that are waiting to be launched.”