Unsold residential inventory in Singapore has continued to increase, hitting 37,800 units (including executive condominiums) by the end of the first quarter of 2019, reported Singapore Business Review citing OCBC Investment Research.
The figure is way above the long-term historical average of 32,400 units registered since Q1 2007.
And with more projects expected to be launched in the near term, developers may have difficulty disposing the growing inventory levels. “More launches are expected in the near term to add more pressure on the rising unsold inventory,” said Desmond Sim, CBRE’s head of research for Southeast Asia.
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DBS Research data showed that around 51,964 residential units are expected to be completed between 2018 and 2022. Of these, 22,280 units are set for completion by 2022.
With this, OCBC Investment maintain its “private residential price growth forecast of -3 percent to +2 percent for 2019” but pare its primary transactions volume projection “to 8,000-10,000 from 10,000-12,000 as the number of new launches this year may not pan out as aggressively as previously expected”.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email email@example.com