SINGAPORE, March 3 (Xinhua) -- Home prices in Singapore may fall in the next few years as a record number of homes are expected to be completed over the period of time, local daily the Straits Times reported.
Analysts expected 2013 and 2014 to be the risky years, the newspaper said Thursday.
Statistics of the Urban Redevelopment Authority on homes under construction or already with planning approvals show 17,111 new homes were expected to be completed in 2013 and 17,421 in 2014, higher than the record 14,000 or so private apartments completed in 1998, said Chua Chor Hoon, head of real estate firm DTZ's southeast Asia research.
The numbers could go even higher if the projects that get planning permission in the near future are included, she added, projecting a total of 21,680 homes to be completed in 2014 and 22, 520 in 2015.
Together with the supply of new government-built flats, this could lead to a serious supply spike in two to three years.
"The demand-supply imbalance is expected to lead to prices and rentals coming under pressure, especially if interests are higher then," she said.
In comparison, an average of only 8,563 homes were supplied to the market a year over the past ten years.
Nomura analyst Sai Min Chow recently also noted a possible supply tsunami next year, suggesting that 15,457 non-landed private homes are scheduled for completion next year, which is double official estimates.
Private residential units expected to be completed by 2015 amounted to 65,699, with 32,776 unsold as of the end of last year, the Urban Redevelopment Authority said.
The luxury segment in the city center will be the most susceptible to price falls next year, Sai said, about 47 percent of the homes to be completed this year are in the segment, which has already seen signs of rental weakness.
Editor: Xiong Tong
Analysts expected 2013 and 2014 to be the risky years, the newspaper said Thursday.
Statistics of the Urban Redevelopment Authority on homes under construction or already with planning approvals show 17,111 new homes were expected to be completed in 2013 and 17,421 in 2014, higher than the record 14,000 or so private apartments completed in 1998, said Chua Chor Hoon, head of real estate firm DTZ's southeast Asia research.
The numbers could go even higher if the projects that get planning permission in the near future are included, she added, projecting a total of 21,680 homes to be completed in 2014 and 22, 520 in 2015.
Together with the supply of new government-built flats, this could lead to a serious supply spike in two to three years.
"The demand-supply imbalance is expected to lead to prices and rentals coming under pressure, especially if interests are higher then," she said.
In comparison, an average of only 8,563 homes were supplied to the market a year over the past ten years.
Nomura analyst Sai Min Chow recently also noted a possible supply tsunami next year, suggesting that 15,457 non-landed private homes are scheduled for completion next year, which is double official estimates.
Private residential units expected to be completed by 2015 amounted to 65,699, with 32,776 unsold as of the end of last year, the Urban Redevelopment Authority said.
The luxury segment in the city center will be the most susceptible to price falls next year, Sai said, about 47 percent of the homes to be completed this year are in the segment, which has already seen signs of rental weakness.
Editor: Xiong Tong
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