Media reports are stating that the President of the Real Estate Developer’s Association of Singapore, Chia Boon Kuah, has pointed out that recent data from the Urban Redevelopment Authority (URA) has shown that the rate of vacancy for private homes stands at 7% for the 3rd Quarter of 2014. They further predict that this number could reach 10% as a result of the upcoming supply of 68,000 new units set for the next few years. This might spell bad news for Botanique Bartley as it is near the city fringe.
Vacany Rates of Private Homes in Botanique Bartley
During REDAS’ 55th anniversary, which was recently held at the Ritz-Carlton Millenia hotel, he shared his opinion that the industry is expecting persistent headwinds as the barrage of property market cooling measures continue to dampen sales on Botanique Bartley and take a bit out of buying sentiment. He feels that this looming supply to come in the next few years will more than likely cause the rate of home vacancies to move towards 10%, adding even more pressure to the residential sector of the market.
City Fringe Condos Botanique Bartley
According to URA data, they are expecting over 20,000 new units to hit the market each year starting from 2015 and until 2016, before being moderated to around 15,000 in 2017 for new condos such as Botanique Bartley.
In addition to this, it has been forecasted that new private home sales will drop from 2013’s 18,000 units to under 9,000 units by the end of 2014. Chia further added that, in combination with the significant stock moving into the pipeline, the private housing sector is seeing a continuation in greater challenges, which could in turn affect the economy.
Botanique Bartley Vacancy Rates
He also pointed out that, adding to this, 20% of the adult population there works in either construction or real estate. Involved in this sector are 25% of the top 20 listed firms.
Chia has said that witnessing unintended outcomes favored no one. Therefore, we must urge the government to be ready to take up supportive measures in order to prevent a tipping point in the possibility of the market turning volatile and worse than before. Chia did not specify just what measures should be implemented by the government but it will hamper Botanique Bartley sales.