No Oversupply of Homes in Singapore in 2010

Many fear that there will be an oversupply of privatedevelopers could sell uncompleted units or be unable to
home in Singapore next year in 2010. However, theresell the completed properties.
could by a situation of shortage.Based on URA statistics in the boom period of 2007
The Urban Redevelopment Authority's (URA) secondand 2008, many developers are confident that the
quarter 2009 real estate statistics showed that theprivate homes will be sold quickly. However with the
potential oversupply maybe in 2011 or later. This isLehman Brothers incident in September 2008, it
because many developers delay or even cut down ontriggered the slowdown of the economic.
project development.The incident initially caused much concern that private
The number private condominium target for completionproperties would not sell. The developers since then
for 2011 has been reduced to about 5400 units. Asslashed some projects and pushed back the
compare to 2008, the number of condominiumcompletion of the private properties. As a result, URA's
estimated at 17,000. This is a decreased of 70 perfigure for the total planned units for completion in 2009
cent.showed a decline of 6000 units.
As developers reduced the number of the building,Although almost all the URA's projected completion
property buying has increase back to the previousstatistic had drop gradually in 2008, there are already
peak in 2007. For the month of May, June, July, theresigns of bottoming up in 2009. In the third quarter of
are more than 1000 private property had been2008, it was projects that around 13000 to 1600 units
transacted monthly.will be completed yearly after 2010.
With this there may be a possibilities that privateMany project completions had be delayed from 2010
property prices and rents could increase in 2010. Mainlyto 2011. For the first half of the year 2009, about 5200
caused by the supply side.private property unit have been complete. For
The number of completed units could be differenceexample, the completion Casa Merah recently had
from the number sold, due to caveats issue, as thecontinue to pull in the crowd of mass market buyer.