Rise in unsold units may lower prices

Analysts: Expect more properties for private homes to be available in 2017

More land plots for private homes are expected to be freed up by the Government for the first half of next year.

Analysts expect an upsurge in the release of land by the Government to be imminent in the next land sales exercise due to the strong show of bids for sites and the diminishing stocks of unsold private homes.

“In order to keep land prices from over-escalating, in particular for executive condominiums (ECs), and private homes, the Government could release more sites for the first half of 2017,” Ms Alice Tan, head of consultancy and research at Knight Frank, explained.

The Government has previously stemmed the sale of land properties because of a weak and muted market – a case that marketers say is now over as evidenced by the aggressive bids placed by developers for available properties.

rise in unsold units

According to SLP Research and Consultancy, and CBRE Research, the top five highest Government Land Sales (GLS) bids this year include the Central Boulevard, Siglap Road, Martin Place, New Upper Changi Road/Bedok South Avenue 3 (Parcel B), and Bukit Batok West Avenue 6.

The Ministry of National Development is expected to later make announcements on the available sites up for grabs in the first half of next year.

Earlier this year, four plots with the capacity to provide 2,170 private residential units were already confirmed for sale. With the current state of the market, the stable demand for new homes, and the unprecedented low numbers of unsold residential units, analysts forecast an increase in the confirmed supply in the upcoming land sales exercises, ranging from 2,500 to 3,200 units.

However, these potential units will not be within proximity of areas with substantially launched units like the Redhill and Commonwealth areas.