The government’s plan to slash the number of Build-to-Order (BTO) flats to be launched next year will have no significant impact on the resale market, said analysts interviewed in the media.
Given the declining application rate for BTO flats and the balance flats from the past years which are expected to be introduced back into the market, analysts believe that the estimated 16,000 BTO flats set to be launched in 2015 are more than adequate.
“In 2007 and 2008, the government actually offered less than 10,000 BTO units every year. The large ramp-up in BTO supply over the past three years was something necessary but not sustainable. Hence, the government needed to scale back to a more sustainable level,” explained SLP International’s Executive Director Nicholas Mak.
Aside from the reduced BTO flats, the government also plans to curb the land supply for condominiums and Executive Condominiums, albeit no details were provided.
Notably, the number of private residential units completed this year stood at 16,7000, while the number of new units sold by developers dropped to an all-time low in four years.
Looking ahead, analysts expect 21,900 private residential units to be completed in 2015.
Image source: MND
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
