More bullish land bids expected in 2017
If the analysts’ prediction for the next half year is anything to go by, a housing boom could be seen with new housing sites being released next year. There are two main factors which have contributed to the surge in the demand for housing.
For one, there is a bid for houses which is set to be bullish. The demand for newly built homes has maintained throughout the years and there are also fewer unsold units of Singapore Condominiums that were under construction. The unsold private home stocks and the bullish market have prompted the government of Singapore to spring to action.
One thing that it plans to do is to release more of plots to fill in the looming shortage. On the other hand, land lenders have set themselves ready to restore their land stocks which are expected to be replenished the moment the government releases the plots for sale.
In order to prevent over supply of land, The Ministry of National Development (MND) has been reducing lands that are released for sales in 2016. And hence this explains why the demand for Singapore Condos that are under construction has been stable.
There are 5 sites leading this year which include 3 residential plots, 1 mixed residential and commercial plot and 1 white (commercial) site.
These are:
- Central Boulevard
- Siglap road
- Martin place
- New upper Changi road/Bedok South Avenue
- Bukit Batok West Avenue 6
There were approximately 2170 residential units derived from four of the plots released. And in the upcoming GLS in 2017, more likely there will not be any residential plot released for sales in regions where there are lot of new launches or significant unsold residential condominium units such as Commonwealth and Redhill.
In general, most developments would take about 3 years to reach obtain its Temporary Occupation Period (TOP), this would mean a buffer stock of around 21,000 units by then. Comparing these with unsold uncompleted private residential units which stand at 20,577, a stock of about 21,000 residential units was a drop from a previous 22,456 a year earlier. The numbers of unsold uncompleted units were at its highest at 43,473 in about 8 years ago at 2008.
And due to the shortage of land released, it is expected that there will be an increase in the number of bidders for the upcoming sites and an aggressive demand for lands since developers will need to replenish their inventories to keep business going.
Find out more from the link below,
http://www.straitstimes.com/business/property/more-sites-for-private-homes-may-be-released
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