Are We facing an Oversupply in Singapore New Condo Launch 2020?

Updated on 29 November 2019

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Are we facing an Oversupply in New Condo Launch?
On 6th June 2019, the Government said to cut the supply of government land sales by 15%.

MAS flag

MAS Flags loan risks amid rising home supply

Homebuyers and investors to take extra care before taking on a mortgage given the uncertain economy. 

The warning from MAS yesterday also pointed to the large supply of unsold units that could weigh on the property sector.

How many Supply is in the Pipeline?

Do you know why the government wants to do so?
According to MND, the demand has continued to fall since the introduction of the property cooling measures in July last year.
Furthermore, there is a large supply of around 44,000 private housing units in the pipeline. So what does this mean?

Is this the First Time we face High Supply?

They are actually telling you that there are 44,000 of private homes going to obtain TOP in the coming years. Usually we have no idea about all this figure unless we have a comparison with the past history, right?

So, I compare them with the year 2015-2016 because that was the period that has the highest supply in the recent years. From the graph given by URA, there are already more than 50,000 units obtained TOP in 2015 and 2016. And the property market is still able to absorb that. Therefore, with the higher population in 2023, do you think the demand can absorb the supply which is lower than what we had before in 2016?

How about the Vacant Units?

In addition, the news also mentioned there are around 24,000 existing private housing units that remain vacant. So again, what does this mean?
Meaning there are nobody staying in these 24,000 units. However, the vacant units have gradually decreased from the past to 6.3% in the 1st quarter of 2019. Now with the 93.7% occupancy rate of private housing in Singapore, this is considered as healthy situation.

Which Segment has the Lowest Supply?

Take a look at the existing and upcoming new launch (in the video), with over 90 projects for your choice, I’m sure you will be hesitate which project to choose right?

That’s very common especially if you’re the first time buying property.

Take the second look (in the video), you will notice that most of the developments are higher end above $1,500psf.

With my rough work, 20% of them are above $2,500psf, 12% between $2,000psf to $2,500psf, 49% between $1,500psf and $2,000psf, and only 19% are below $1,500psf.

All these percentage are derived from the number of total units. Usually the more affordable ones will sell first. So, do you think next year the supply of new condo launch below $1,500psf will be more? or less?

Besides that, the new launch ECs are hitting $1,000psf-$1,200psf. That makes the new launch condo below $1,500psf to be the icing on the cake.
But like what I said in my previous video, there is no one project that fits everyone at all time. Buying at the right timing, select the right project and unit are very important.
Now, if you are unsure about which project has the highest potential gain, feel free to contact me for free discussion. I’m Stephen Chong at +6591887652. Thank you for watching.

Plan For Yourself is very Important!

To do all these researches are time-consuming and it keeps updated every after.

As a lot of people never plan anything before going to showflat and end up paying more.

I suggest we have a short meet up first where I can share with you based on your case and what is the best scenario moving forward and based on the market now what are the projects best suit you!

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    Are We facing an Oversupply in Singapore New Condo Launch?
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    Stephen Chong
    Stephen Chong
    Lim Ming Hwee
    Lim Ming Hwee
    Stephen is a very good agent who goes beyond his way to ensure that his clients are happy. He is very patient and helpful, and will always give good advice.
    Joseph Sze
    Joseph Sze
    Stephen is a professional & responsible person who has provided good quality customer services to our recent Condo housing purchase & related matters. I found he has put in great efforts and gone for extre miles to assist us in the whole process and related purchase issues. Excellent work, Stephen!👍🏼👍🏼👍🏼
    SZ Lim
    SZ Lim
    Was going thru Stephen's video when I noticed he had a google review panel up. Going to copy paste my review on his FB page from 2019. I still stand by my review. Stephen was very professional throughout our engagement process. I first engaged Stephen as his effort could be seen thru the videos he made. The videos were informative, detailed, yet easy to understand from a beginners point of view. Could also see the improvement of his videos as time passes, and that speaks volumes about one's character on his eagerness to improve and share. During my engagement with him, Stephen was very professional. Since I was very new in the scene, I required alot of guidance and honesty. Stephen was very upfront with me on many items and did not try to hide any facts from me. As a first time buyer, both good and bad prospects were laid out after his detailed analysis on my current financial condition and also on the projects we went to see. Comparing to other agents who will just blab anything that benefits their sales point, Stephen was straightforward and truthful on the issue. I have met quite a few agents but would highly recommend Stephen to people who are looking for properties, be it looking for a place to stay, or looking for a property to invest.
    YingYu Tan
    YingYu Tan
    Stephen handled both my HDB sale and new condo purchase. The whole process was fuss-free and smooth. What impressed me was his willingness to go the extra mile for his client, from analyzing every detail and being there for me and my wife every step of the selling/buying process.
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    We came across Stephen YouTube video and appreciated the tips he is providing. We decided to engage Stephen when we were house hunting. Most people may feel that you can DIY resale hdb buying process. Personally we feel its money well spent engaging Stephen. The whole buying process is swift. Stephen is very prompt in his reply. He did alot of detailed analysis and recommend us the units we can explore. He is very detailed anf meticulous. This process saved alot of time. He also gave us helpful advice on the units we viewed. No hard selling or rush you into hasty decisions 😊
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    Knowledgeable and professional, Stephen is not the typical agent you will meet. Ever so patient, he will help provide his genuine feedback and never pushy unlike most sales agents. Fortunate to have Stephen walk with me in my property investment journey. Will recommend Stephen to anyone who is looking for a trustworthy agent to walk the mile with.
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    Very patient and give good advise. I bought ec under him and he sold my hdb.
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    I believe every property investors or home buyers have encounters with numerous property agents. However, how many of you ever met someone with passion and enthusiasm to sit down and analyze each property based on your criteria (budget, requirements like location, size, etc)? Having watched Stephen's videos in YouTube, decided to ping him and the rest is unspoken of. Not only did he helped to narrow down our search, he also analyzed which project has higher prospect and which unit (level, facing, etc) fits our living habits. No complaints, except for not knowing Stephen earlier. Good job Stephen, thank you.
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    Esther Cheh
    Stephen was the agent assisting us in the purchase of our condo and now to market them for rental. He is extremely helpful, open, transparent and reliable throughout the entire time. He went above and beyond to help us set things up while we are not in Singapore.He is also very professional and knowledgeable about the property market in general. I am confident to leave our condo in his care to find us a good tenant and to manage them in future.
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