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As we welcome 2018 in the next few days, some developers are likely to have to reach for record prices next year in order to break even on some of those en bloc deals this year.
Analysts say the unsold stock of residential property is not all that high by historical standards. Unsold residential stock has fallen by more than half, from more than 44,000 units in 2008 to 17,421 units as at 3Q2017 according to statistics from URA.
Analysts say the unsold stock of residential property is not all that high by historical standards. Unsold residential stock has fallen by more than half, from more than 44,000 units in 2008 to 17,421 units as at 3Q2017 according to statistics from URA.
Developer sales volume reached 8,702 units in the first three quarters of 2017 and could end the year at the 10,500-to-11,000-unit level. If this buying momentum is sustained into 2018 and 2019, the unsold stock of 17,421 units would be depleted in less than two years.
Unsold inventory levels of 17,000 units are near 18-year lows, and we agree they could rise as more units — 20,000 by MAS estimates — are launched in the next one to two years. Analysts felt the pace of increase will be partially offset by home purchases, which are tracking at 12,000 units in the past 12 months.
Some market watchers suggest that developers have chosen to replenish their landbanks by aggressively bidding for en bloc sites because there has been a reduction in the number of sites released under the Government Land Sales programme in recent years.
Unsold inventory levels of 17,000 units are near 18-year lows, and we agree they could rise as more units — 20,000 by MAS estimates — are launched in the next one to two years. Analysts felt the pace of increase will be partially offset by home purchases, which are tracking at 12,000 units in the past 12 months.
Some market watchers suggest that developers have chosen to replenish their landbanks by aggressively bidding for en bloc sites because there has been a reduction in the number of sites released under the Government Land Sales programme in recent years.
The recent GLS sites released by URA for the 1st half of 2018 could result in diverting some demand away from the collective sale market but not necessarily stop land prices from getting pushed up as the surge in en bloc deals is simply a reflection of the market working as property developers sense a coming upturn in demand due to the strong pickup in sales this year.
On Nov 30, URA announced the launch of four sites for sale. Two sites, on Holland Road and Handy Road, were launched for sale under the Confirmed List. Another two sites, on Mattar Road and Canberra Drive, were made available for application under the Reserve List. Together, these four sites can yield about 1,720 residential units, URA said.
The surge in land prices was not just the result of developers needing to replenish their landbanks but also the big stock market rally as the stock market in Singapore and regionally have done well in 2017. At the end of the day, demand and supply will dictate market forces will balance the property market.
On Nov 30, URA announced the launch of four sites for sale. Two sites, on Holland Road and Handy Road, were launched for sale under the Confirmed List. Another two sites, on Mattar Road and Canberra Drive, were made available for application under the Reserve List. Together, these four sites can yield about 1,720 residential units, URA said.
The surge in land prices was not just the result of developers needing to replenish their landbanks but also the big stock market rally as the stock market in Singapore and regionally have done well in 2017. At the end of the day, demand and supply will dictate market forces will balance the property market.
Are home prices vulnerable? - December 4, 2017 - Edgeprop
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