{"id":113098,"date":"2019-12-16T18:10:00","date_gmt":"2019-12-16T11:10:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/growth-in-private-home-prices-still-possible-in-2020-say-experts\/"},"modified":"2019-12-16T19:05:43","modified_gmt":"2019-12-16T12:05:43","slug":"growth-in-private-home-prices-still-possible-in-2020-say-experts","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/growth-in-private-home-prices-still-possible-in-2020-say-experts\/","title":{"rendered":"Growth in private home prices still possible in 2020, say experts"},"content":{"rendered":"


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\nPrivate home prices in Singapore is expected to grow modestly in 2020 amid resilient rental demand, according to property analysts and experts. Despite this, developers will face an uphill task of selling their units, given the high number of unsold private homes in the pipeline, reported The Business Times.
\nData released by the Urban Redevelopment Authority (URA) showed that there are still 31,948 homes that remain unsold at the end of Q3 2019.\u00a0
\nAssuming developers continue to sell around 9,000 private homes on average each year, take-up will be about 18,000 units in 2020 and 2021. Meanwhile, land from the confirmed list under the Government Land Sales (GLS) Programme is estimated to\u00a0add around 3,000 private homes per year, or 6,000 units over the next two years.
\nThe take-up numbers\u00a0versus the GLS supply could likely result in a net reduction of about 12,000 units from the batch of uncompleted and unsold private homes.
\n\u201cIf the GLS continues to be conservative and outstripped by primary-market sales, we could see the figure fall to under 20,000 units by end-2021, potentially setting the stage for a market recovery,\u201d said Ong Teck Hui, Senior Director of Research and Consultancy at JLL.
\n\u201cIf by then, Singapore\u2019s economic growth has picked up and home-buying demand improves, that would pave the way for stronger growth in private home prices,\u201d he added.
\nThe last time the number of uncompleted and unsold units went below 20,000 was in 2017. The figure was 15,085 units at the end of Q2 2017.
\nRECOMMENDED ARTICLE:\u00a0Presenting The Singapore Property Market Outlook 2020
\nSlight growth expected for private home prices in 2020:\u00a0Experts
\nThe URA private home price index in Q3 2019 rose 2.1% from Q4 2018, with most of the property consultants expecting a full-year increase of 2 to 3.5%, which is slower compared to the 7.9% rise in 2018.
\nIn year 2020, property analysts expect a more subdued growth for private residential property prices. Citing the Singapore Property Market Outlook 2020, PropertyGuru Singapore Country Manager Tan Tee Khoon predicts that \u201cthe current overhang of unsold units will be absorbed by the market within five years\u201d.
\nTee Khoon, however, cautioned that economic headwinds, slow population, employment and wage growth are factors that can affect demand and uptake, which has been\u00a0positively influenced by this year\u2019s favourable interest rate environment. He notes that this could yet change next year.
\n\u201cMy take is that private housing price growth in 2020 will be modest, between 2 to 4%, depending on economic condition,\u201d said Tee Khoon.
\nDesmond Sim, CBRE head of research for Southeast Asia,\u00a0has a bleaker outlook for the property market by predicting\u00a0a 1% growth for the private residential\u00a0property price index in 2020.
\n\u201cSmaller units continue to be the main driver of sales. Due to high per square foot prices, home sizes are compromised to keep the absolute quantum palatable to buyers,\u201d Sim said.
\nHigher agent commission will boost home sales: Industry insider
\nObservers also said that the take-up for newly launched condominiums in 2019 have been somewhat uneven. Developers\u2019 willingness to reward agents is one key factor that affected the success of launches, aside from pricing, location and various differences.
\n\u201cCommissions used to be less than 2% in 2017 before creeping up to 2-2.5% after the July 2018 property cooling measures,\u201d noted an insider.
\nProperty analysts predict that developers will move 9,200 to 10,500 private homes in 2019, an increase compared to 8,795 units in 2018. For 2020, their estimate hovers around 8,000 to 11,000 units.
\nRECOMMENDED ARTICLE: What\u2019s New In The URA Master Plan 2019? [Part I Of II]
\nNew Private Home Sales Higher in 2019, But Resale Transactions To Fall
\nWhile the number of private homes sold by developers in 2019 will be higher compared to 2018, resale transactions are expected to be lower.
\nSim estimated the figure to be around 8,400 to 8,500 units this year, a reduction from last year\u2019s 13,009 units. For 2020, he predicts the same figure to hit 9,000.
\nTemporary Occupation Permits (TOP) are expected to be issued for 7,933 private homes this year, compared to 9,112 units last year. Meanwhile, vacancy rate dropped to 6.1% during end-Q3 2019, compared to 6.4 from the previous quarter.
\nRegarding\u00a0the lacklustre resale market, Tee Khoon noted that buyers are gravitating towards newly launched condominiums because of a few key factors. \u201cNot only are newly launched private properties typically selling at a lower price quantum than resale, new launches also offer a deferred payment option that is appealing to buyers.\u201d
\nWant more analysis? Download our comprehensive\u00a0Market Outlook 2020 report
\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…Growth in private home prices still possible in 2020, say experts<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Private home prices in Singapore is expected to grow modestly in 2020 amid resilient...<\/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-113098","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-tqa","jetpack-related-posts":[{"id":112892,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/government-releases-gls-residential-sites-for-1h-2020\/","url_meta":{"origin":113098,"position":0},"title":"Government releases GLS residential sites for 1H 2020","date":"December 5, 2019","format":false,"excerpt":"\r The Ministry of National Development (MND) announced on 3 December it will release three confirmed\u00a0sites for private residential developments in the 1H 2020 Government Land Sales (GLS) programme. The 1H 2020 sites will yield a combined 1,775 units. While the number of sites and units released\u00a0is lower\u00a0than the\u00a0five confirmed\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43127,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-wont-ease-supply-of-private-housing\/","url_meta":{"origin":113098,"position":1},"title":"Govt won\u2019t ease supply of private housing","date":"February 7, 2017","format":false,"excerpt":"\r According to the MND, demand for private housing remains robust, while the number of unsold units is at a historical low. The Ministry of National Development (MND) on Monday (6 February) said it does not plan to slow down or halt the supply of private housing via the Government\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":59340,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ramped-up-land-supply-may-not-be-enough-for-developers-analysts\/","url_meta":{"origin":113098,"position":2},"title":"Ramped up land supply may not be enough for developers, analysts","date":"June 30, 2017","format":false,"excerpt":"\r \u00a0 Analysts believe the ramped up supply of development sites under the Government Land Sales (GLS) programme for H2 2017 is insufficient to meet the developers\u2019 demand for sites given the declining stock of unsold private homes. Announced yesterday, the H2 2017 GLS Programme comprise six sites on the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102154,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/govt-trims-land-sales-amid-large-supply-softer-demand\/","url_meta":{"origin":113098,"position":3},"title":"Govt trims land sales amid large supply, softer demand","date":"December 7, 2018","format":false,"excerpt":"\r The upcoming supply is nearly 20 percent lower than the over 8,000 units provided in the second half of 2018.\u00a0 The government revealed last week that it will release five confirmed list sites and nine reserve list sites for sale under the first half 2019 Government Land Sales (GLS)\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":52468,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/ura-launches-2-housing-sites-for-sale\/","url_meta":{"origin":113098,"position":4},"title":"URA launches 2 housing sites for sale","date":"April 21, 2017","format":false,"excerpt":"\r Two housing sites at Stirling Road and Lorong 1 Realty Park were launched for sale by public tender by the Urban Redevelopment Authority (URA) on Thursday (21 April). Offered on a 99-year leasehold tenure, both sites can potentially yield about 1,160 units. 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