Even developers are jittery about vacancy rates...

By The Folks @PropTalk - November 26, 2014 No Comments

The real estate industry has urged the Government to be prepared to take "supportive measures" to prevent a tipping point, if the property market turns volatile and worsens further.

Speaking at the Real Estate Developers' Association of Singapore's (REDAS) 55th anniversary dinner on Wednesday evening (Nov 26), the association's president Mr. Chia Boon Kuah added that the looming supply of 68,000 completed new residential units in the next few years is likely to cause home vacancy rates to head towards 10%.

Official figures have put the private home vacancy rate at 7.1% in the third quarter of this year.

"Developers are concerned. Genuine home buyers from the Singapore market have adopted a wait-and-see attitude. The situation poses significant challenges to the property sector, and there could be wider impact. It is in no one's interests to witness unintended outcomes," Mr. Chia said.

Mr. Chia also noted that private home prices have declined in the last four consecutive quarters, while transaction volume has also dropped from 18,000 in 2013 to less than 9,000 expected this year. 

Source: CNA


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