By Romesh Navaratnarajah:
With a surge of new homes coming on to the market, Singapore’s housing sector will soon become a buyer’s market as developers continue to provide attractive incentives, according to experts.
Chris Comer, CEO of Castlewood Group, the developer of Nikki Beach properties around Asia, said: “It’s going to be a renters’ market here for a very long time.”
In a Wall Street Journal report, Singapore resident Comer reckoned that a downturn could hit Singapore in the next 12 months, and “you’ll start to see properties resold for less than they paid for them”.
Other analysts do not see a bubble, but have warned of an oversupply instead, which will likely cut prices and rents.
In an earlier report, Nomura said that 16,000 new private homes would be delivered in the next three quarters compared with 2,408 in Q1.
“Supply is likely to outstrip demand and vacancy (and rents) will likely come under more pressure in the coming quarters.”
Concurring, Daiwa analyst David Lum acknowledged the possibility of a supply glut, highlighting that some 86,000 private homes were in the pipeline by end-2012. This is in addition to the influx of HDB flats set to enter the market between 2014 to 2016.
He added that this would lead to an 18 percent decline in mass market home prices and 20 percent in the luxury segment through to end-2015.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email [email protected]
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Originally Posted by yowetan
