REDAS: Concerns remain over unsold condo units

Romesh NavaratnarajahNovember 6, 2015

Singapore condo (2)

Finance Minister Heng Swee Keat said the government, real estate industry and homeowners have a shared interest in ensuring a stable and sustainable property market, reported The Straits Times.

In fact, the government “has always taken a medium-term approach towards managing land supply, based on fundamental demographic and economic factors, and has encouraged a competitive and transparent environment to ensure a well-functioning property market,” he said at last night’s anniversary dinner of the Real Estate Developers’ Association of Singapore (REDAS).

He noted that the government introduced several measures “to smooth out the cycles and promote market sustainability over the medium term.”

Meanwhile, REDAS President Augustine Tan revealed that developers remain concerned over the growing supply-demand imbalance.

He cited a survey of 14 projects which showed that prices for some apartments were lowered by up to 11 percent, with several projects having to cut prices twice.

In addition, around 3,000 units from projects built on sites from the Government Land Sales Programme in 2012 are still unsold.

“The total number of unsold units is about 40 percent of the 7,500 units that developers are expected to sell this year,” he said.

Moreover, the cost of construction had also increased due to improved quality as well as higher specifications for home finishes and fittings.

“Prices cannot drop too deeply without affecting the quality of our products and operational obligations,” added Tan.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

kat
Nov 15, 2015
The walls between rooms are generally thinner and hollow compared with older buildings. Also some of the building lobby area are so small and claustrophobic. Not sure if the REDAS guy claim of high quality can be substantiated...
Maddy
Nov 09, 2015
I think bigger balconies generates better profit margin for developers. They don't need to construct expect floor and they can charge it at the same rate (psf).
cs cs
Nov 08, 2015
Any idea why developer build with much larger balconies? which living room remain small...
Alvin Tan
Nov 08, 2015
Viewing newer unit recently, I can only say much of the space is wasted in having such large balconies, resulting in small rooms and living spaces. This is simply not practical in our climate here.
Joy
Nov 07, 2015
Totally agree with libbra on configuration of the new projects. Personally feel the current configurations (for the middle class income earners) cannot promote larger families and results in near TV watching (causing increased myopia).
libbra
Nov 07, 2015
i guess the reason why new condo units not attractive to home buyer due to its interior confegration as all rooms and kitchen or washing bay are too small for living….
Greg Li
Nov 06, 2015
How is the cost of construction going up when most of the building material cost is significantly lower?
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