Nearly half of the approximately 8,430 new private homes due to be completed this year will be in the upmarket core central region (CCR), according to new data released by the Urban Redevelopment Authority (URA).
The government agency has also increased its estimate for the projected supply of private homes to be completed in 2011 by 25 percent from the previous quarter. URA estimated in October 2010 that 6,766 new private homes will be completed this year.
“URA’s survey of the developers’ completion (for 2011) is only starting to increase. The increase from Q3 2010’s forecast for 2011 completions to Q4 2010’s forecast is a significant 25 percent. Over the next few quarters, we expect to see further upward revisions,” said Ku Swee Yong, CEO of International Property Advisor.
Analysts once again cautioned that home buyers need to prepare themselves for a huge supply of private residential units scheduled to be completed every year between 2011 and 2015.
Based on URA’s current estimates, 8,116 units will be completed next year, 17,111 units in 2013, 17,421 units in 2014 and 13,453 units in 2015.
The number of newly completed private homes in 2010, which stands at about 10,400 units, is already higher than the average annual increase in housing supply of about 6,400 private units over the past 10 years, he said.
For this year, 3,874 homes will be added to the housing supply in the CCR, which include Sentosa Cove, Marina Bay and prime districts 9 to 11. This will comprise 46 percent of the islandwide housing supply of 8,430 new private homes.
A further 2,265 private homes are due to be completed in the rest of central region (RCR) and 2,291 units in the outside central region (OCR) this year.