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http://www.tremeritus.com/2015/08/22/unsold-property-units-will-take-many-years-to-clear/
[h=2]Unsold property units will take many years to clear[/h]
August 22nd, 2015 |
Author: Contributions
Unsold units will take many years to clear: report
With
more residential projects set for completion in the coming quarters, property
developers will need more time to clear their inventory of unsold units in
previously launched developments, reported Singapore Business Review
citing a Savills report.
“Adopting the CCR’s average monthly sales for the period of January to May
2015, and assuming there will be no further Government Land Sales (GLS), it will
take about 12 years to clear the inventory of unsold units in projects under
development now,” said Savills.
It highlighted that the situation is even more serious for projects located
away from the central region, since the GLS programme is generally focused on
the OCR and RCR.
“The time to clear the stock of present and future unsold units will be more
than 12 years. Therefore, even if island-wide take-up rates double, it will take
well over five years to sell down the inventory,” the report stated.
While demand is expected to gather pace in the near future, this does not
mean that the property market has returned to normal.
“The broad brush measures have merely made the smaller units more affordable
to local buyers whereas larger units and those with a high price quantum, mainly
those projects in the CCR, are not selling fast enough to clear off the unsold
inventory.
“Lowering prices further would not be a panacea to increase demand because
much of the unsold stock are larger units, which, because of the larger price
quantum and the various cooling measures, are beyond the reach of many locals
and permanent residents,” added Savills.
Romesh
Navaratnarajah
* The author is the
Singapore editor of PropertyGuru.
To contact him about this or other stories, email [email protected]
. Article reproduced with permission.
[h=2]Unsold property units will take many years to clear[/h]
August 22nd, 2015 |
Author: Contributions
Unsold units will take many years to clear: report
more residential projects set for completion in the coming quarters, property
developers will need more time to clear their inventory of unsold units in
previously launched developments, reported Singapore Business Review
citing a Savills report.
“Adopting the CCR’s average monthly sales for the period of January to May
2015, and assuming there will be no further Government Land Sales (GLS), it will
take about 12 years to clear the inventory of unsold units in projects under
development now,” said Savills.
It highlighted that the situation is even more serious for projects located
away from the central region, since the GLS programme is generally focused on
the OCR and RCR.
“The time to clear the stock of present and future unsold units will be more
than 12 years. Therefore, even if island-wide take-up rates double, it will take
well over five years to sell down the inventory,” the report stated.
While demand is expected to gather pace in the near future, this does not
mean that the property market has returned to normal.
“The broad brush measures have merely made the smaller units more affordable
to local buyers whereas larger units and those with a high price quantum, mainly
those projects in the CCR, are not selling fast enough to clear off the unsold
inventory.
“Lowering prices further would not be a panacea to increase demand because
much of the unsold stock are larger units, which, because of the larger price
quantum and the various cooling measures, are beyond the reach of many locals
and permanent residents,” added Savills.
Romesh
Navaratnarajah
* The author is the
Singapore editor of PropertyGuru.
To contact him about this or other stories, email [email protected]
. Article reproduced with permission.
