Government Plans to Release land for up to 7,550 Private homes for Second half of 2016
The Minister for national development in a post through the GLS defended the rationale behind the increase for the second half of the year projected for the second half of the year. It is an effort to find the right balance using the performance in the first half of the year as a yard stick to predict the immediate future.
The beauty of this move of government towards second half of the year is to provide the balance. One, developers will get their demand for more residential units satisfied. On the part of the buyers, there will be more for them; a sort of variety of options thereby increasing the base from which they can make a choice. We have in past experienced an increase in new launch condo units such as Cityscape Singapore, Forte suites, Sims Urban Oasis, and Sturdee Residences. With the new change, more units are expected to crop up across the Singaporean property market.
Every government policy is a function of deep research before a blue print is given for the policy direction. There is a glaring decline in the number of unsold private home units over the months. There is also a corresponding increase in sales of private home units. The increase will balance up the equation to satisfy the market forces.
There are two divides here: If the supply is greater than demand; prices will fall, more so when the market is weak. On the other hand, if supply falls short of demand, there will be scarcity, a worse scenario to fall in price of the sales condo units.
The solution is the option taken by the government. They are closely monitoring the market with a view to making the adjustments that will balance up any perceived imbalance that may rear up its head. That they have done in their projections for the next six months.
Apart from the figure, location is also an important factor which the government took into consideration before earmarking any site for sale. From research results, there is a clear indication that buyers prefer the suburban areas of the community to settle in.
The first timers prefer new launch Condo units in suburban areas; those that want to upgrade also prefer this site. Hence the focus of government is on this area. Bearing this in mind, the government has decided to locate two of the sites in the latest launch outside Central Region.
The increase in residential condo for sale units for the second half of the year is a decision in the right direction. It will balance the equation in the residential sector of the economy.