Developers in a rush to launch new projects: Developers are moving to launch new projects to take advantage of the strong response seen in the primary home sales market, according to a report by The Business Times. In March alone, a slew of developments were released, including the 193-unit Natura @ Hillview Terrace, 429-unit Palm Isles condo at Flora Drive, 679-unit Ripple Bay condo and 276-unit Seletar Park Residence.
“Developers know this trend cannot be sustained, especially when you have HDB launching (so many units),” said Ku Swee Yong, Chief Executive of International Property Advisor (IPA).
Market watchers argue that the large number of new homes entering the market this year may be due to the government's efforts to release more land for residential development. Last year, the government released enough land for a total of 17,510 new homes, a significant increase from 2010’s 13,945 homes. Moreover, the number may still grow, considering the recent trend of building smaller flats.
“Developers are trying to reduce their risks by shortening the cycle between the day they win the bid and the day they launch the property to sell,” added Ku. He also noted that turnaround time is now between nine to 12 months, compared to the previous 12 to 18 months.
Although shoebox units have become popular recently, potential problems could still arise. Tenants might be hard to come by when such units are released, said market watchers.
By Romesh Navaratnarajah (Property Guru)
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