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08-12-11, 16:10
http://www.businesstimes.com.sg/sub/news/story/0,4574,468820,00.html?
Published December 8, 2011
Govt to release smaller supply of residential land in H1 2012
Industry players fear it may still be too much, given latest cooling measures
By UMA SHANKARI
(SINGAPORE) The government will release a slightly smaller supply of residential land in the first half of 2012. But industry players feared that it would still be too much, given the latest cooling measures and the substantial supply of private homes already in the pipeline.
The Ministry of National Development (MND) said yesterday that it would release new land for about 14,100 private homes in the first half of 2012 as part of its twice-yearly land sales programme. This includes 3,500 executive condominium (EC) units.
Of that amount, around 7,000 units (including 2,900 ECs) will be rolled out through the confirmed list.
This is slightly less than the 8,100 units offered under the confirmed list in H2 2011. Land parcels under the confirmed list are sold according to scheduled dates.
MND said that it took into account the new policy measures announced yesterday and the large supply pipeline of 81,600 private homes when it decided on the land sales programme for the first half of 2012.
'In deciding on this supply, which is slightly less than the 8,100 units in the H2 2011 confirmed list, MND has taken into consideration the large supply of 81,600 private residential units - including 5,300 EC units - that are already available in the pipeline as at Q3 2011, as well as the possible moderation in investment demand for private housing due to the policy measure announced today,' MND said.
Of the 81,600 units available in the pipeline, about 41,000 units (including 1,900 EC units) were still unsold, the ministry added.
But while it cut the total land supply for private homes, more land for building EC units will be up for sale.
Sites for 3,500 EC units will be made available in H1 2012 - including 2,900 EC units on the confirmed list. This is comparable to the 2,985 EC units from five sites sold in 2011.
Demand for EC units is expected to climb after the government raised the monthly income ceiling for the purchase of new EC units to $12,000 from $10,000 in August 2011.
National Development Minister Khaw Boon Wan pointed out that the EC supply is being ramped up. 'This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only,' he said.
EC units are initially sold with eligibility and ownership restrictions similar to HDB's public housing flats, but will be converted to private housing after 10 years.
Analysts were worried that the total supply of residential land for H1 2012 is excessive as it comes on top of the new cooling measures.
'I think that under normal circumstances, the market will probably be able to absorb the supply,' said Bank of America Merrill Lynch economist Chua Hak Bin. 'But with the kind of measures that have just been announced, there is a danger that demand could collapse altogether.'
International Property Advisor chief executive Ku Swee Yong similarly said that the upcoming supply seems to be 'abundant'.
He also noted that more than half of the supply from the confirmed list will be concentrated in the north-east of Singapore (specifically, in Sengkang, Pasir Ris and Punggol). 'The concentration of supply is a risk for home owners in those locations,' he added.
Jones Lang LaSalle's head of research Chua Yang Liang said that in the slightly longer term, the rate of immigration will play a large factor in whether the supply will be absorbed.
'Currently in the market, there is a mis-match between supply and demand due to the quick growth in population over the last few years,' Dr Chua noted. 'The measures will reduce some of the demand. But a lot will also depend on the rate of immigration next year and the years after.'
In addition to the supply of residential land, the H1 2012 government land sales programme will also comprise some 2.35 million square feet of commercial space as well as 4,800 hotel rooms.
The programme also includes a commercial plot in Paya Lebar at the junction of Sims Avenue and Tanjong Katong Road - which was put up for tender in 2011 but not awarded as the sole bid from UOL Group and Singapore Land was deemed to be too low. It will be added to the reserve list for H1 2012.
Published December 8, 2011
Govt to release smaller supply of residential land in H1 2012
Industry players fear it may still be too much, given latest cooling measures
By UMA SHANKARI
(SINGAPORE) The government will release a slightly smaller supply of residential land in the first half of 2012. But industry players feared that it would still be too much, given the latest cooling measures and the substantial supply of private homes already in the pipeline.
The Ministry of National Development (MND) said yesterday that it would release new land for about 14,100 private homes in the first half of 2012 as part of its twice-yearly land sales programme. This includes 3,500 executive condominium (EC) units.
Of that amount, around 7,000 units (including 2,900 ECs) will be rolled out through the confirmed list.
This is slightly less than the 8,100 units offered under the confirmed list in H2 2011. Land parcels under the confirmed list are sold according to scheduled dates.
MND said that it took into account the new policy measures announced yesterday and the large supply pipeline of 81,600 private homes when it decided on the land sales programme for the first half of 2012.
'In deciding on this supply, which is slightly less than the 8,100 units in the H2 2011 confirmed list, MND has taken into consideration the large supply of 81,600 private residential units - including 5,300 EC units - that are already available in the pipeline as at Q3 2011, as well as the possible moderation in investment demand for private housing due to the policy measure announced today,' MND said.
Of the 81,600 units available in the pipeline, about 41,000 units (including 1,900 EC units) were still unsold, the ministry added.
But while it cut the total land supply for private homes, more land for building EC units will be up for sale.
Sites for 3,500 EC units will be made available in H1 2012 - including 2,900 EC units on the confirmed list. This is comparable to the 2,985 EC units from five sites sold in 2011.
Demand for EC units is expected to climb after the government raised the monthly income ceiling for the purchase of new EC units to $12,000 from $10,000 in August 2011.
National Development Minister Khaw Boon Wan pointed out that the EC supply is being ramped up. 'This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only,' he said.
EC units are initially sold with eligibility and ownership restrictions similar to HDB's public housing flats, but will be converted to private housing after 10 years.
Analysts were worried that the total supply of residential land for H1 2012 is excessive as it comes on top of the new cooling measures.
'I think that under normal circumstances, the market will probably be able to absorb the supply,' said Bank of America Merrill Lynch economist Chua Hak Bin. 'But with the kind of measures that have just been announced, there is a danger that demand could collapse altogether.'
International Property Advisor chief executive Ku Swee Yong similarly said that the upcoming supply seems to be 'abundant'.
He also noted that more than half of the supply from the confirmed list will be concentrated in the north-east of Singapore (specifically, in Sengkang, Pasir Ris and Punggol). 'The concentration of supply is a risk for home owners in those locations,' he added.
Jones Lang LaSalle's head of research Chua Yang Liang said that in the slightly longer term, the rate of immigration will play a large factor in whether the supply will be absorbed.
'Currently in the market, there is a mis-match between supply and demand due to the quick growth in population over the last few years,' Dr Chua noted. 'The measures will reduce some of the demand. But a lot will also depend on the rate of immigration next year and the years after.'
In addition to the supply of residential land, the H1 2012 government land sales programme will also comprise some 2.35 million square feet of commercial space as well as 4,800 hotel rooms.
The programme also includes a commercial plot in Paya Lebar at the junction of Sims Avenue and Tanjong Katong Road - which was put up for tender in 2011 but not awarded as the sole bid from UOL Group and Singapore Land was deemed to be too low. It will be added to the reserve list for H1 2012.