Friday, January 18, 2013

Pipeline Supply of New Residential Units by Expected Year of Completion in Singapore

"Some 200,000 new housing units will be constructed – 80,000 private properties, 10,000 ECs and about 110,000 public housing. This is equivalent to the building of four new Ang Mo Kio towns by 2016!   And we are still building more", said  Minister for National Development Khaw Boon Wan in his blog post named "Enough Homes for All".

Indeed, according to a chart published in the blog post (below), total number of new residential units by 2016 will be 197,559! Most units are expected to be completed in 2016 with 42,318 HDB flats will be ready in that year.

In May 2011, new Minister for National Development Khaw Boon Wan changed almost a decade old practice of BTO (Built-to-Order) in public housing to Build-Ahead-of-Order. Since than around 25,000 public housing units are built each year.

In the same blog post Khaw Boon Wan also defended the latest and most comprehensive to date round of Singapore property cooling measures:

"Last week’s package of property cooling measures is necessary to soften the market.  The alternative of doing nothing, allowing the prices to run beyond economic fundamentals, will only invite a large and serious price correction in the future.  That will not do anyone any good.

The package was carefully formulated to protect first-timers. Investors buying additional properties may be disappointed but I hope they will in due course come to accept that the package will also be good for them.  In any case, many of the new measures are counter-cyclical in nature, to be lifted when the market regains its balance.

The market is temporarily not in balance because of under-building in the past, and high investment demand today.  But we have been ramping up supply and in 2, 3, and 4 years’ time, supply will have caught up with pent-up demand."

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