2 bad news from URA's 1Q13 property market report

There'll be 16,429 non-landed private homes.

According to Nomura, the URA published the 1Q13 property market statistics on 26 April and the good news is that non-landed private housing occupancy continued to improve from 93.9% to 94.2% during the quarter.

Also, rents for mass-market condos and HDB flats continued to climb 0.7% and 1.8% (5-room) respectively during the quarter (though prime luxury rents fell 0.4%).

Here's more from Nomura:

The bad news, however, is our estimates suggest another 16,429 non-landed private homes will be completed in the next three quarters (vs. the 2,408 units completed in 1Q13 and 9,853 units in 2012).

Lastly, the net absorption rate of 2,393 units in 1Q13 (and 9,531 units in 2012) continues to support our base case that supply is likely to outstrip demand and vacancy (and rents) will likely come under more pressure in the coming quarters.