The Urban Redevelopment Authority (URA) issues data every quarter on the demand and supply of the residential property market.
There were 16 extensions or annexes filled with many ratios, charts and other statistics in the Q2 2009 release. Multiplying this with the past releases, the total number of data proved to be truly astonishing.
Considerably, people should focus on the vacancy rate. The key statistic should be examined by residential property buyers.
The vacancy rate in Singapore can be computed by dividing the amount of vacant units by the total amount of available units. Originally, the URA expressed the vacancy rate in the reverse method, as the occupancy rate. This could be determined by dividing the amount of occupied units by the total amount of available units.
The vacancy rate is very significant due to the direct correlation between the prices and occupancy rate.
However, there is a tendency in the occupancy rate to change by two to three quarters due to price fluctuations. Therefore, the key is to know how vacancy rate changes. So how will the vacancy rate change in the next two years? The hints are in the HDB policy, URA data and the mechanics of demand and supply.
Since 1995, an additional 8,100 private homes on average has been occupied, despite three terrible economic downturns, according to URA data. One must at least determine the figures next year, with the recovering global economy.
This number may become higher due to the launching of the integrated resorts next year that will attract many tourists.
The vacancy rate remains firm because the number of units occupied grew by 2,158 in the first quarter, 2,616 in the second quarter and 4,774 in the first half of the year.
This occurred in spite of the worst recession in Singapore since independence. Because of this, the prediction by a foreign investment bank, indicating that many foreigners will leave Singapore, is proven wrong.
The increase in the occupants has been driven by the growth in the number of permanent residents, according to the data released by the Singapore Department of Statistics.
From 2000 to 2008, the number of permanent residents (PRs) increased by 5.8 percent, while the number of citizens increased by 0.6 percent yearly. There is an average increase of 22,000 PRs per year, thus, they need shelter to occupy at.