SINGAPORE - A housing oversupply looms over the north-east district, with market watchers expecting about 16,000 private residential units (including executive condominiums) to come on-stream in Punggol, Sengkang and Pasir Ris over the next five to six years.
Later this year, developers are expected to bid for four sites in the north-east that are expected to yield some 2,000 executive condominium units.
This will add to the 3,295 units from sites released in the area by the government in the first half of the year.
"The north-east is now most at risk of an oversupply. When taken together with HDB flats, the total number of units plus, potentially, a lack of demand from expats … and, in future, relatively weaker rental value … In the next three to five years, these risks will start to show," said Mr Ku Swee Yong, CEO of International Property Advisor.
Despite this, experts predict that a well-located site will see eight to 10 bids.
"Pricing will be competitive in Punggol and Pasir Ris," said Mr Alan Cheong, research head of Savills Singapore. "There will be a bit of competition among developers but prices will remain competitively stable."