LUXURY HOME MARKET TO BATTLE OVERSUPPLY THIS YEAR
The luxury home market will face a tough year ahead, thanks to the recent cooling measures and the possibility of an oversupply of new homes.
As thousands of already launched units await buyers, developers may put off further launches until the market begins to pick up.
Thankfully, interest rates remain low and many property firms are cashed up from the bumper market in previous years so they can ride out the slump.
Colin Tan, Research Head at Chesterton Suntec International, said, “If a developer has not launched its project yet, it might be better not to launch because once you do you're locked in. But if you don't, then you can still adjust your plans according to changing market conditions.”
There are at least 25 launch-ready projects in districts 9, 10 and 11, prime areas for luxury homes. There are over 2,000 unsold homes, including units at Leedon Residence, Ardmore TwentyOne Anguilla Park
Projects are considered launch-ready if they have obtained all the prerequisites and approvals for sale and are merely waiting for the green light from property developers.
Tan noted that developers are still earning revenue with healthy sales at mass market projects. Thus, selling city-centre homes is not urgent, as prices still fall below their previous peak.
CBRE found that half the units, or 2,846 homes at 30 already-launched projects in districts 9, 10 and 11 were still unsold as of the end of November last year.
Info courtesy - PropertyGuru.com.sg
