Buyers who have been waiting for launches of more private homes may be disappointed as the government is likely to restrict the number of private housing units being released in H2.
Property market slowdown and suppressed growth possible factors
2,025 residential units (including executive condominiums or ECs) were released in the first half of 2019.
However, the next half will only see the release of 1,715 units, 15.3% lesser than in H1. The property market’s slowdown and a possible supply glut could have prompted the authorities to clamp down on the number of confirmed sites under the Government Land Sales (GLS) programme.
A total of 2,875 private residential units will be released this year (excluding ECs) through the GLS confirmed the list. In previous years, an average of 3,095 to 4,355 units was released per year.
There will be only 5 confirmed list sites in the second half of the year. There are however many private sites going en bloc at the same time, and the competition is high considering the market lull.
Developer and buyer demand have fallen since property cooling measures
The property market has cooled considerably since the implementation of last July’s property curbs. Buyer demand has fallen and so has developers’ demand for land. The latter is clear in the lack of successful bids for collective sales of private land sites this year.
The substantial number of unsold units in the pipeline may manifest following the robust collective sales in 2017 and 2018.
Out of the 5 upcoming sites on the GLS confirmed list are a site on Irwell Bank Road which is in the prime district and near upmarket developments such as New Futura and a 4.1 hectare site in Canberra Drive which has been split into 2 plots in order to be more palatable to developers.