OverSupply Concern Made Mild by Industry Watchers

RESIDENTIAL MARKET

Industry watchers assuage over-supply concerns

Even as a large pipeline of residential units in Punggol has sparked market chatter over a possible over-supply, other areas in Singapore, including the Kovan/Lorong Ah Soo/Hougang belt, Pasir Ris, and Bukit Panjang/Upper Bukit Timah too face substantial upcoming supply.

That being said, these areas are relatively well supported by amenities in the region, and healthy take-up by HDB upgraders.

Pasir Ris is arguably a self-contained township, given that leisure options (Pasir Ris Beach and Downtown East) supplement job opportunities (employment hubs listed above, including Pasir Ris Industrial Drive/Loyang).

The Bukit Panjang/Upper Bukit Timah/Cashew/ Chestnut Avenue belt on the other hand, which can expect some 3,920 private units coming on-stream from 2014, will have its "hibernating potential" unlocked with the completion of new MRT stations in the Downtown Line 2.

While there are no employment hubs within the vicinity, it is within the range of Jurong East, which is envisioned to be Singapore's largest regional hub outside the city centre.

The Hougang/Lorong Ah Soo/Kovan area on the other hand can expect rejuvenation, through the spate of new projects lined up, including mixed use developments with strata malls which will renew the residential identity.

Indeed, a buyer's profile analysis through caveats lodged for projects launched over the past two years show that most of the areas surveyed have a larger share of buyers who are HDB dwellers, with Punggol, Sembawang, and Yishun having the highest average share of purchasers with HDB addresses, at 73 per cent.

Source: Business Times – 17 September 2012