The repercussions of Covid-19 led to slashing of private housing supply

    • The Government Land Sales (GLS) program has decreased the contribution of private residential properties from confirmed sites under their control for the second half of this year, considering the adverse effects of the global pandemic.
    • For 1,370 units from three established list sites, the private home supply is 23 per cent or just about 405 units, whereas in the first half it was 1,775 units from such sites under the 2020 GLS program. As compared to the Global Financial Crisis in 2009, the figures are still the lowest as no confirmed sites were released in the second half during that crisis – informed Ms. Christine Li, Cushman and Wakefield’s Head of Research for Singapore and South-east Asia.
    • Under the second half of the GLS Program, the potential private properties results to 6,670 units which is a little higher when compared to the first half i.e. 6,490 units. However, the eight reserve list sites can lodge 5,300 private properties.
    • The GLS has carried over one site on River Valley Road from the first half year program. This site can allow 530 hotel rooms.
    • No new sites will be introduced mainly for the commercial or hotel use taking into account the unsettled business and the depression prevailing in the economy due to the pandemic, said the Ministry of National Department (MND). In order to avoid the potential supply shortcomings over the long run, the reduction measures were taken carefully, it added.
    • Since, numerous unsold inventories of the private properties has reduced by a growing number of 20 per cent in the first half of 2019 and 2020, the MND has provided an avrage supply this time.
    • The sites which are included in the confirmed list will only be launched in the last quarter of the year. During this fragile period, develoers will be given a duration of about six months so that they can analyse their plans considering the ongoing pandemic.
    • According to theory, lower the housing supply, higher could be the prices but as he current market situations are difficult in terms of growth, this theory could may not work – said Wong Siew Ying, PropNex Head of Reaseach and Content.
  • During the ongoing economic situations, buyers have become more price sensitive as well and the developers are very well familiar with such factors and may not be very positive with the buyers.

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