I've been expecting this for the last one year. 2013 is the inflexion point. There will be enough supply for 113k more people in 2013 at a time when population growth is below that. Already we are seeing rental rates fall, especially in the OCR. The over supply in OCR is the most severe and will last until 2016. It will fall by 10-30% in price.
With rental yields falling, the perfect storm will start in 2014 until 2016 when rates start to creep up.
Some Singaporeans have been prudent in their investments, going for resale homes overseas, especially those that fetch very high net rents. But others blew it on shiny new, over priced off plan overseas properties in in OCR / RCR. They may not have enough ammunition to take advantage when prices finally trough in 2016. "A fool and his money will soon be parted".
PUBLISHED JUNE 04, 2013
Construction sector crucial in co-piloting 'soft-landing': Khaw
BY
THE engineering of a "soft-landing" in Singapore's housing market requires the construction sector to play its part as well, wrote National Development Minister Khaw Boon Wan yesterday on his blog, Housing Matters.
Earlier yesterday, the minister witnessed the handover of a completed block at Treegrove @ Woodlands, a new Built-To-Order (BTO) project, from its appointed building contractor to the Housing & Development Board (HDB).
In his blog post, Mr Khaw wrote that ramping up the supply of HDB flats and private residential units is a key strategy in achieving a "soft-landing".
He went on to say that he watches the progress of the local construction programme closely because it is an "important element in our soft-landing mission".
The minister also said HDB's building contractors had completed 6,000 units as at the end of last month, and despite the tightening of foreign labour policy, remain confident of delivering the remaining 7,600 units by the end of the year.
As for private residential units, 3,500 were completed as at end-April this year. Going by latest construction progress, the Urban Redevelopment Authority estimates that the remaining 14,900 private residential units can also be completed within this year, said Mr Khaw.
All in all, 13,600 HDB flats and 18,400 private residential units are scheduled to be completed this year.
The minister wrote: "We will begin to feel the effect of the ramped-up supply this year; but the full effect will be felt next year and the year after that."
Aside from boosting supply, Mr Khaw said HDB has also arranged for BTO projects such as Treegrove @ Woodlands to be completed in phases, so as to "help residents move into their flats earlier" by allowing for buyers to receive their keys as and when the blocks are completed.
"For this particular block at Treegrove @ Woodlands, flat buyers can receive the keys within a couple of weeks," he added.
Separately, HDB said yesterday that it will launch another 25,000 flats this year and deliver between 26,000 and 29,000 flats each in the next two years.
