Singapore will see fewer new property launches this year as property developers focus on moving unsold units on the back of looming flat glut, said DBS and reported in the media.
In a report, DBS noted that buying demand will continue to be weak in 2015 with demand for new units continuing to be lacklustre due to the government’s ongoing property measures.
Notably, primary sales are forecasted to stand within the range of 8,000 to 9,000 units.
“We believe property developers will continue to focus on clearing unsold inventories in their books. Landbanking activities are likely to remain selective, given further cuts in the GLS in H1 2015,” it said.
Given the growing unsold inventory and the industry facing a deluge of new unit completions in 2014/2015, DBS expect prices to drop by around 15 percent over 2015 to 2016.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
