Record 18,400 new homes to come on-stream

Record 18,400 new homes to come on-stream

SINGAPORE - A record number of homes is expected to be completed in Singapore this year.

This comes on the back of the bumper land supply pushed out by the Government to tame the red-hot property market in the past few years.

An estimated 18,400 homes are set to be built this year, easily eclipsing the previous high of 14,600 units built in 1997, Urban Redevelopment Authority (URA) data out on Friday showed.

This supply is likely to cool the market further after the seventh round of measures - which included tighter loan limits and higher stamp duties - was unveiled in January this year.

Rental growth is also expected to slow towards the latter part of the year in the light of these completions, experts say.

Already, private home prices have moderated in both the landed and non-landed segments as the slew of curbs take red-hot temperatures in the property market down a notch.

Prices inched up just 0.6 per cent in the first three months of the year, well down from the 1.8 per cent gain in the period before, according to URA's data.

This is slightly up from the 0.5 per cent increase when the flash estimates were released earlier this month, indicating that prices have accelerated slightly in the final few weeks of the quarter.

The flash estimates are based on transaction prices of caveats lodged during the first 10 weeks of the quarter.

But gains in home prices have softened across the board compared with the final quarter of last year.

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