Private home supply shrank by 63% in December.
A scarcity in private homes could await Singaporeans come end 2016 as the government land sales programme announced in December saw residential supply dip to 925 units, down 85% from its 7,000-unit peak.
According to analysts from Barclays Research, due to the lack of new supply, certain choice locations with attractive attributes could see prices hold up better than those with abundant unsold inventory.
“On 14 Jan, a desirable site in eastern suburban Singapore on the Confirmed List of the Government Land Sales (GLS) attracted eight bids. Frasers Centrepoint, partnering Sekisui House (40%) and KH Capital (a unit of Keong Hong Holdings) submitted the top bid of S$624.18mn or S$858psf ppr, 4.0% above the next highest bid submitted by a CDL consortium,” Barclays Research said.
Barclays added that while they expect fewer new launches by end 2016, demand could shift to secondary projects.
Do you know more about this story? Contact us anonymously through this link.