76,255 private homes to be completed over the next 5 years

In the residential segment, average prices rose a slower 1.3% in 3Q, unchanged from the earlier flash estimate, vs a 2% appreciation in 2Q. This is the 8th consecutive quarter of deceleration in price momentum. The change in 3Q was largely due to upward price movements in the Outside Central Region (OCR) at 2% while the Core Central Region and Rest of Central Region (RCR) moved up 0.7% and 1.2% respectively. This reflects a growing uncertainty due to the weaker macroeconomic outlook as well as the rising supply pipeline. HDB resale prices  continued to inch up by 3.8% vs a 3.1% increment in the previous quarter.

Residential rental growth moderated to 0.8% q-o-q as new completions rise and as take up moderates due to slower economic activity. As a result, vacancy rates increased to 5.8% from 5.1% in previous period.

At the end of 3Q, an additional 76,255 private residential units are scheduled to complete over the next 5 years, the highest level since 1999. Of this, 39,111 are still unsold. We expect the supply number to continue rising, especially in the mass market segment, in view of the large number of sites available under the GLS programme.