{"id":112959,"date":"2019-12-09T15:41:48","date_gmt":"2019-12-09T08:41:48","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/4-years-needed-to-clear-property-supply-glut-experts\/"},"modified":"2019-12-09T16:05:26","modified_gmt":"2019-12-09T09:05:26","slug":"4-years-needed-to-clear-property-supply-glut-experts","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/4-years-needed-to-clear-property-supply-glut-experts\/","title":{"rendered":"4 years needed to clear property supply glut: Experts"},"content":{"rendered":"


\nThe current property glut issue in Singapore could take around four years to be eliminated, property experts told Bloomberg. The overhang could also\u00a0exert a downward pressure on property prices in the midst of an uncertain economic outlook.\u00a0
\nThe Urban Redevelopment Authority (URA) revealed an overhang of 31,948 units as of 30 September, with sales averaging around 2,500 homes per quarter in 2019.\u00a0
\nShould sales continue at\u00a0the 2019\u00a0rate, it will take about four years to eliminate the backlog, according to Christine Li, Head of Research for Singapore and Southeast Asia, Cushman & Wakefield.
\nDevelopers want property curbs eased
\nThis current glut has caused developers to call the government to ease property curbs, including by decreasing the 20% stamp duty for foreign purchasers and giving them more time to sell apartments before receiving penalties in the form of levies.
\nTo prevent land hoarding, developers are given five years from the time of purchase to construct and sell every unit at a site, or risk paying a 25% levy to the government.\u00a0
\nChia Ngiang Hong, president of the Real Estate Developers\u2019 Association of Singapore (REDAS),\u00a0feels\u00a0that the five-year limit is \u201ctoo harsh\u201d as it places a lot of stress on developers. He also said the government should instead extend the deadline to seven years for projects that have more than 1,000 units.\u00a0\u00a0
\nGiven the gloomy economic outlook in 2020, sales might fall between 5 and 10% next year, said Christine Sun, Head of Research at OrangeTee & Tie. Nevertheless, she noted that property prices could still rise at a slower pace at 1 to 3%, \u201cassuming the economy doesn\u2019t deteriorate excessively next year.\u201d
\n\u201cUnwise\u201d for the government to bail out developers: Li
\nAccording to URA data, there are more unsold units in the suburban areas of Singapore. As of the third quarter of 2019, there are 8,917 unsold units in prime districts, compared to 10,538 in suburban areas.
\nThe cause of the current overhang can be traced back to the property boom and the en-bloc fever in 2017 and 2018. Property owners were collectively selling their apartment blocks to developers, who\u00a0had bought them to redevelop the site at a profit.
\nAnd this \u201cexcessive exuberance\u201d in buying en-bloc sites is the cause of the current over-supply, said Li. She also noted that it would be \u201cunwise\u201d for the government to bail out developers by easing cooling measures. Instead, she wants to see stricter limits imposed on en-bloc sales so that the buying frenzy will not happen again.
\nLi also warned against a bailout. \u201cIf this precedent of a bail-out is set, developers will not exercise restraint in acquiring en-bloc sites in future cycles, flooding the market with supply and relying on the government to rescue them again,\u201d she said.\u00a0
\nProperty prices have been increasing since the cooling measures
\nWhile residential property prices dropped after the government put up a new round of curbs in July 2018, they have recently begun to increase again, rising 1.3% last quarter, according to the URA 3Q 2019 report..
\n\u201cIt\u2019s prudent of Singapore\u2019s government to monitor the domestic residential property market closely for signs of over- or under-heating, and calibrate the measures as appropriate to ensure a stable and sustainable market,\u201d said Tay Huey Ying, Head of Research and Consultancy for Jones Lang LaSalle\u2019s Singapore.
\nStay tuned to PropertyGuru for more insights into the Market Outlook for the year ahead.
\nLooking for a property in Singapore? Visit\u00a0PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…4 years needed to clear property supply glut: Experts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The current property glut issue in Singapore could take around four years to be eliminated,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-112959","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tnV","jetpack-related-posts":[{"id":113157,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/as-singapore-heads-into-election-easing-property-curbs-appears-unlikely\/","url_meta":{"origin":112959,"position":0},"title":"As Singapore heads into election, easing property curbs appears unlikely","date":"December 18, 2019","format":false,"excerpt":"\r Singapore is unlikely to ease property cooling measures as it heads into a high-stakes election that could take place in the first half of next year.Although several developers, including City Developments Ltd, have called on the government to loosen curbs to help fix an apartment glut, such a move\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":112995,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-chief-wants-absd-extension-to-ease-immense-pressure\/","url_meta":{"origin":112959,"position":1},"title":"CDL chief wants ABSD extension to ease "immense pressure"","date":"December 11, 2019","format":false,"excerpt":"\r (Above: The recently launched Sengkang Grand Residence by CDL) One of Singapore\u2019s largest developers, City Developments Ltd (CDL), has put the finger on the Additional Buyer\u2019s Stamp Duty (ABSD) levy imposed by the government\u00a0as the indirect cause of\u00a0the large property supply overhang in Singapore. According to the rules, developers\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":94435,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/supply-glut-unlikely-to-happen-condo-prices-may-see-healthy-growth-jll\/","url_meta":{"origin":112959,"position":2},"title":"Supply glut unlikely to happen, condo prices may see healthy growth: JLL","date":"July 23, 2018","format":false,"excerpt":"\r More than 50,000 unsold units are forecasted to enter the market in the coming years. A glut is unlikely to occur in Singapore\u2019s private housing market despite the pessimistic outlook of the Real Estate Developers\u2019 Association of Singapore (REDAS), which believes that the new property curbs could erode market\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":113120,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/higher-private-home-sales-recorded-in-november-despite-property-overhang\/","url_meta":{"origin":112959,"position":3},"title":"Higher private home sales recorded in November despite property overhang","date":"December 17, 2019","format":false,"excerpt":"\r Sengkang Grand Residences was the best-selling condo in November 2019. Sales of new private homes in November picked up significantly amid a property glut and despite the beginning of the year-end holiday period, reported The Straits Times. Excluding executive condominiums (ECs), developers moved 1,147 units in November\u00a0\u2013 a 23.2%\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2019\/12\/Top-10-Selling-Condos-In-November-Colliers-International.png?fit=1076%2C790&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":94189,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-property-curbs-to-erode-market-confidence-says-redas\/","url_meta":{"origin":112959,"position":4},"title":"New property curbs to erode market confidence, says REDAS","date":"July 18, 2018","format":false,"excerpt":"\r The new property curbs are a \u201cbig setback\u201d for Singapore\u2019s property sector, according to the Real Estate Developers\u2019 Association of Singapore (REDAS) in a report by the Business Times. These new cooling measures will impact the confidence of property developers, investors and home buyers, said REDAS President Augustine Tan.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":94757,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/developer-cools-price-in-response-to-cooling-measures\/","url_meta":{"origin":112959,"position":5},"title":"Developer cools price in response to cooling measures","date":"July 26, 2018","format":false,"excerpt":"\r The Tre Ver in Potong Pasir opened for preview last weekend, attracting about 6,000 potential buyers. 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