Private residential property expected to stabilise in 2020, in line with economic fundamentals: Redas president
SINGAPORE (EDGEPROP) - Singapore’s private residential market is expected to stabilise this year, in line with the country’s economic fundamentals. But while new home sales appear to be resilient so far this year, the sales performance across different projects and property segments could be uneven going forward, says Chia Ngiang Hong, president of the Real Estate Developers Association of Singapore (Redas).
Chia was speaking at this year’s Redas Spring Festival Lunch at the Orchard Hotel on Friday. The guest of honour was Lawrence Wong, Minister for National Development. In his speech, Wong, who is also co-chair of the multi-ministry committee tackling the Wuhan coronavirus crisis, called on the real estate industry to play its part to help contain the spread of the virus in Singapore.
Wong says the government recognises the negative economic impact the virus outbreak will have on Singapore’s economy this year, particularly for specific sectors such as hospitality and retail. This also comes as the government prepares to unveil the Budget for the year ahead.
Thus, “the government is studying how it can support specific sectors and the economy”. But the minister did not reveal what this support might look like in terms of the government’s Budget plans.Members of the Redas management committee, including Redas president Chia Ngiang Hong (fourth from left) and Lawrence Wong (fifth from left) Minister for National Development, welcomed the new lunar new year at the Redas Spring Festival lunch on Jan 31. (Picture: Redas)
Turning to Singapore’s private property market, Chia says that more than 30 new projects are expected to launch for sale this year and will comprise about 9,000 units. He adds that about half of the new projects are in the city centre, or Core Central region (CCR).
According to Chia, demand for private homes from HDB upgraders is expected to remain steady this year, as close to 26,100 HDB flats will reach their Minimum Occupation Period (MOP). This is about 50% higher compared to the average number over the past five years, he says.
In addition, Chia says that the resale HDB market is expected to experience more liquidity after the introduction of a higher income ceiling and improved government subsidies for potential HDB buyers.
“Developers’ concerns over the on-coming supply and build-up of unsold inventory remain. [But] we are assured that the government is monitoring the real estate market closely and will act where and when needed to maintain a stable and sustainable property market,” says Chia.
He adds: “We also need to stay vigilant and guard against any misleading perspectives or reports, in particular, unsubstantiated allegations that could harm our image or cast doubts on our integrity and weaken the trust and social fabric that binds us together.”
His statement comes after Redas categorically rejected a suggestion in a research paper by a team from the National University of Singapore, which initially claimed that real estate developers here had been engaged in insider trading. The researchers subsequently dropped their claim.