The bumper crop of collective-sale properties seems to be starting to dwindle, or perhaps developers’ appetites are shrinking.
However, the harvest from the past year or so of fervent en bloc sales will enter the market next year.
55 to 60 projects expected to launch next year
Analysts are expecting up to 60 new private residential projects to launch next year yielding about 17,000 units.
While developers may delay some launches to 2020, the number of new private homes entering the market could still be considerable. With a large number of launches flooding the market next year, it was no wonder some developers were in a hurry to launch this year.
There were 7 launches in November alone.
New projects in these areas could generate some excitement as there have not been many new launches here for some time now. Some analysts are expecting benchmark prices to be set.
Home prices expected to rise 3%
Home prices may see some revision next year, though slight. The price increment is not expected to go beyond 3% and sales volume is expected to however around 20,000 units.
This is lower than last year’s 25,000 as URA’s guidelines on minimum apartment size kicks in. The guideline is now 85 sq m, down from the previous 70 sq m.
The supply of completed homes, however, is expected to dip next year and remain low for the next 2 to 3 years. This year’s inventory of completed homes stood at 7,898 and most of the units have already been sold.
Analysts expect next year’s home prices to be in the range of $1,350 to $1,650 psf in the suburbs and $1,850 to $2,600 psf in the city fringes.