Singapore’s residential sector is expected to witness an oversupply of private housing properties, with prices falling 20 percent by the end of 2015, on the back of an expected increase in interest rate along with peak supply, according to Barclays Research in media reports.
The government has reduced private housing (including ECs) on the confirmed list for H2 2014 to about 3,900 units, down 15 percent from H1 2014 and 34 percent from last year.
Majority of the supply is now accounted for by the reserve list, which has also been reduced and is unlikely to be triggered for sale if market conditions continue to decline.
“We believe this as testament to the looming oversupply in 2015 to 2017 as the government reiterated the reduced future supply will be ‘added to the existing large pipeline supply of more than 90,000 private residential units (including ECs)’,” said Barclays.
Going forward, Barclays expect vacancy rate to hit a record of 10 percent by end-2016.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
Related Stories:
Two luxury projects compete for buyers
Second Hougang HUDC privatised
Court annuls loan to remove caveat on $2 million home