Over 22,000 residential units are set to be completed in 2022.
Aspiring homeowners in Singapore will get to have their pick of the litter as there are an estimated 51,964 residential units that will be completed from 2018-2022, according to DBS Research.
"Majority of the units are expected to be completed in 2019, 2021 and 2022," Derek Tan, analyst at DBS said in a research note.
Also read: Private property supply jumped 58.7% in Q3
The supply pipeline is particularly bloated in 2022 with 22,280 units set to be completed although a majority of the homes are still in the planning stage.
In 2018, there were 3,506 homes were under construction in 2018 which surged significantly to 10,119 units set to be completed by 2019. There are also 3,796 homes under construction that will be completed by 2020. Beyond 2022, the accummulated supply pipeline is poised to hit close to 58,000 in pipeline supply.
Despite the availability of supply, demand for homes may not easily materialise as the Singapore residential market weakens following July's cooling measures. Take-up levels for residential units have dipped in 2018 to suggest that it is taking a longer time for developers to clear unsold units.
Indeed, project launches during the first ten months of 2018 have already slowed to a take-up rate of at least 38% within one month of launch compared to a year ago 50% for 10M17, observed Tan. “Based on a selected sample of project launches over 2018, we found that project launches in the first six months of 2018 saw an average take-up rate of 75%,” he added.
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