Singapore’s property price are expected to drop by up to five percent due to an oversupply – Expert

 

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Property experts are expecting an oversupply in the local residential sector from 2014 if the global and domestic economies do not rebound back and curbs on foreign buyers for private residential sales continue to remain un-reviewed.

Kwek Leng BengPrivate home prices in Singapore are expected to drop by up to five percent due to an oversupply of residential properties from 2014 onwards, said Kwek Leng Beng, Executive Chairman of City Developments Limited (CDL) according to an article in Chinese newspaper, LianHe ZaoBao

I don’t believe for a moment the market will collapse, but I believe it can go down. I believe the government is astute enough that by 2015 or thereabouts, it may possibly remove some of the (cooling) measures – because 90.2 percent of Singaporeans own property and it is not their intention to crash the market.” said the Executive Chairman of City Developments Limited (CDL) , second largest developer in Singapore.

City Developments (CDL) also said it is not looking to put in top-dollar bids on land tenders just to grow its land bank in Singapore. This is due to the so-called “qualifying certificate”, which requires developers of high-end residential projects to sell their new homes within two years.

CDL’s Executive Chairman Kwek Leng Beng said: “It will be suicidal to keep on tendering land at high prices and you know (it is) just because you want land bank. It’s not the policy of our company to keep tendering land at the high prices.”

Even though the TDSR framework has made borrowing more difficult for buyers and investors, the EC segment is seen to be the least affected by the cooling measures.

Source – http://www.zaobao.com.sg/ , http://www.straitstimes.com

http://www.cdl.com.sg

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