Developers in a rush to launch new projects
Developers are rushing to launch new projects to take advantage of the strong demand seen in the primary home sales market, according to a report by The Business Times.
"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).
In March alone, a slew of developments were released, including the 193-unit Natura at Hillview Terrace, 429-unit Palm Isles condo at Flora Drive, 679-unit Ripple Bay condo (pictured) and 276-unit Seletar Park Residence.
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 now 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 come up. Tenants might be hard to come by when such units are released, said market watchers. Related Stories:ERA's marketing of Sky Habitat breaks rules
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