- A large supply of mass-market homes is set to enter the market by the end of this year.
- These 99-year leasehold projects are mostly from the flood of suburban state land released by the government over the last year as it attempted to cool robust home-buying demand from first-timers and upgraders.
- At least 5 larger suburban projects are expected to be launched by the end of this year. The total number of units is expected to be approximately 3000 units.
- Far East Organization, CapitaLand, City Developments, UOL Group and Sim Lian Group are just some of the developers that have been gathering interest for their projects recently.
- – Sim Lian’s 452 Par Vara at Hougang Avenue 7 was just launched during the weekend. About 70% of the released units were snapped up by mostly local buyers. They were sold at an average of $800psf – $850psf.
- Experts said developers are eager to quicken their pace of launches over fears of a deteriorating economic outlook.
- They said mass-market projects may also be affected by a fresh batch of sub-urban land supply expected to enter the market.
- The Government Land Sales Programme for the first half of next year is expected to be launched by the end of the year.
- With some recent residential tenders attracting lower bids than sites previously sold in the vicinity, this has also sounded alarm bells for some builders.
- Experts said that pricing will be the key in determining if these slates of mass-market launches do well.
- Although mass-market homes have powered new private home sales since the cooling measures were introduced last January, the question is whether this supply can be absorbed continually.
- New private home sales rose a higher-than-expected 31 percent last month, with buyers snapping up 1,631 units.
- Suburban homes made up 81% of total sales.
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