Housing Supply 2016

housing supply 2016

Oversupply of housing in the market – The most talk-about topic in 2016 by analysts, investors and home owners.

According to a report by Maybank Kim Eng, there will be an influx of new housing over the next few years, from 2016. The number of new private condominiums expected to be completed per year from now till 2018 is 14,900. Whereas executive condominiums will be completed at a rate of 4,400 per year. These are not all. We have to include public housing supply to have a more complete picture of the property market. It is estimated that the net increase in HDB shall be at 22,100 per annum until 2018.

With some simple calculations, anyone will come to realize that it will be a net increase of 41,400 housing oncoming from 2016 till 2018. Comparing to the last 10 years, this figure is double that of the amount of 21,800.

However, do not treat such information as a fall in our housing market because a lot of us have forgotten what the government’s aim was back few years ago – that is to increase Singapore’s population to 6.9 million by 2030. The increase in population has to be backed by an increase in housing supply, else there would be sharp increase in housing demand  which could lead to a sharp rise in housing. Hence there is a reason why supply of housing has increased doubled over the years. That is to rectify the previous shortage in housing and also to cater slowly for an increase in population.

In this market, housing with good attributes eg. good location, great accessibility, surrounded with amenities and good schools will have the upper hand. Stars of Kovan, Sims Urban Oasis, Trilive, 183 Longhaus, Kingsford Waterbay and Sturdee Residences are some new launches that will set to impress those looking our for a good buy.