Singapore developers sound alarm as oversupply of apartments threatens property prices

A full pipeline and subdued demand have made developers increasingly cautious when bidding for land

Property cooling measures imposed in July last year eased values for a period but prices have begun rebounding

2-MIN READ2-MIN

An aerial view of Sentosa Cove homes in Singapore. Photo: Reuters

Published: 12:30pm, 3 Dec 2019Updated: 1:02pm, 3 Dec 2019

Singapore’s developers have expressed alarm over the high supply of private apartments amid slowing demand, with the glut threatening to suppress property prices.

President of the Real Estate Developers Association of Singapore, Chia Ngiang Hong, said at a dinner on Monday evening that home builders are concerned about the fat pipeline and subdued demand.

“We hope the government will continue to watch the pulse of the market, with the aim of maintaining a stable and sustainable market in line with economic fundamentals,” Chia was quoted in local media as saying.

Chia described the property market as challenging and said developers are already more cautious when bidding for land.

Data from the Urban Redevelopment Authority released on Tuesday showed there are about 39,000 private housing units currently in the pipeline, though this has “declined progressively over the past few quarters.”

Around 34,000 of the unsold units come from the government’s land sales programme and en-bloc sites. The other 5,000 are from sites still pending planning approval.

Property cooling measures that were imposed in July last year eased home values for a period but prices have begun rebounding over the past few quarters. Overall transaction volumes have remained modest.