Tuesday, July 10, 2012

8000 new private homes planned for H2

Approximately 8,000 new private homes will come onstream into the market in the next six months, according to analysts. As such, prices are expected to remain stable notwithstanding the risk of oversupply.

In the pipeline are over 700 new units from Hong Leong Group, TID Residential and City Developments, which jointly won the tender for a site at Mount Vernon in January.

“In (the) first half, there were at least about 9,000 to 10,000 units launched. But for the second half, we are expecting about 8,000,” said Ooi Yi Tung, Director at Square Foot Research.

“Interestingly, there will be no ECs (executive condominiums) in the second half of this year. There might be one along Upper Serangoon Road, which if they make it in the second half, but other than that, it will be a pure private residential and pure mixed project.”

Aside from the land parcel at Alexandra Road which was awarded last December, analysts expect another mixed development to spring up at Bukit Panjang in 2H2012.

With regards to demand, analysts expect numbers to be healthy. However, they noted that any major financial crisis that lasts over two years might reduce sales.

“The government seems to be on the steady path of pushing out ample supply of development sites in the past few GLS programmes and likely will push out more in the next one year or so. However, the robust home buying demand is still likely able to absorb the oncoming supply,” said Nicholas Mak, Research Head at SLP International.

Analysts also expect new home sales to exceed the 17,750 private units recorded last year.

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