Residential Market Direction

Slide1

 

Is Singapore properties oversupplying?

After several rounds of cooling measures, more and more properties are available in the market. Together with projects building in pipeline, we may be asking ourselves if we are now in the situation of oversupply?

Below is the graph (source from MND) showing residential properties supply pipeline as on June 2015.

supply-june2015-final

  • From above, there will be approximately 180k (177,710) new residential units to be completed by 2018. This means that every year there will be approximately 60k more units coming into the market.
  • This includes all the residential units of HDBs, Exec Condos and Private.

To determine if we are in Oversupply situation, we have to take into account on our Total population and  the changes of population (Yr Growth) base on Singapore Statistics;

  1. Singapore Birth and Death rate.
  2. Number of Immigrants coming to stay in Singapore.

 

Slide3a

We use our population demand and its growth every year to determine the required number of new units in the pipeline.

We then match the required number of units (mark Green) with whatever outstanding and to be built (mark Red) to determine we are in oversupply or under supply situation below.

Slide4

Clearly we can see that unless our population grow at 2.5% every year, we will be in over supply situation till 2018.

PS: The number of vacant units are only in private. We haven’t consider HDB and EC where the actual figure will be even more!

As a owner or landlord, what will be your plan now?

For any Questions

Please call Ben Tan 97607123 R005574G.

 

Last Updated on 13 Aug 2015