8,000 new private homes estimated in H2: analysts

⋅ July 7, 2012

 

Property developers will launch some 8,000 new private homes over the next six months, according to analysts’ estimates.

While there are small risks of oversupply in the horizon, market watchers told Channel NewsAsia that private property prices should remain stable this year.

A consortium comprising Hong Leong Group, City Developments and TID Residential won the tender for the site at Mount Vernon in January this year which is expected to yield more than 700 private home units.

It is one of the 15 residential land parcels that were successfully tendered out by the government last year which have yet to be launched.

Ooi Yi Tung, director of Square Foot Research, said: “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.

“Interestingly, there will be no ECs (executive condominium) 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.”

Besides the plot of land at Alexandra Road, which was awarded in December last year, analysts forecast another mixed residential-commercial project at Bukit Panjang should excite home buyers in the second half of 2012.

Analysts believe demand will remain robust.

But any major financial crisis lasting more than two years could dampen sales, especially from a growing group of investors.

Nicholas Mak, research head, SLP International, said: “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.”

This year, analysts estimate new home sales to surpass last year’s record 17,750 private home units.

Source : Channel NewsAsia – 6 Jul 2012