More than 4,000 private homes poised for completion in H2

According to CBRE Singapore, at least 20 projects totalling more than 4,285 units, are due to be completed by year end. About half are in Central Business District and in the prime districts of 9, 10 and 11. These includes projects like Boulevard Vue, Volari, Skyline 360° and Marina Bay Suites.

In addition, almost 200 of these homes have yet to be sold. According the Urban Redevelopment Authority (URA), another 1,233 units in completed projects remained unsold as of Q2.

This could provide further pressure on rental prices of luxury residences. URA also shows that rents of non-landed city centre homes dipped 0.1 per cent in Q2, 2012.

A study by Savills also concurred with URA%E2%80%99s findings. Savills%E2%80%99 research showed that average monthly rent dipped to $5.03 per sq ft per month in Q2, decreasing 3% from the previous quarter. On a year-on-year basis, prime rents fell by 8%.

Experts say that the upcoming completions of upscale units will weigh further on the market. Said Mr. Getty Goh, Director of Ascendant Assets, a local boutique research consultancy, “The luxury non-landed residential market typically caters to the affluent foreigners as rich Singaporeans generally have more housing options to choose from. Some alternatives for locals include landed properties or even Good Class Bungalows.”

Mr. Goh added, “In view of this, the current state of the luxury residential market does not come as a surprise as the Additional Buyer Stamp Duty (ABSD) introduced in Dec 2011 has really made foreign investors think twice before buying a high-end residential property in Singapore. Coupled with the lingering concerns of a global slowdown, there is little wonder why the affluent foreign investors are staying on the sidelines at the moment.”