Chart of the Day: 4,500 private home units to be completed from Q2 to Q4

As at Q1, there are nearly 52,100 units in the pipeline.

This chart from EDMUND TIE shows that around 4,500 private home units are expected to be completed from Q2 to Q4. About 37.9% of the pipeline supply (around 19,700 units) have sold, whilst the remaining 62.1% (around 32,000 units) are still unsold.

Based on the five-year annual average take-up of new sale units of around 8,900 units, the unsold units will take around 3.6 years to be absorbed. However, EDMUND TIE said that a prolonged climate of lower sales will reduce the absorption rate.

As at Q1, there are nearly 52,100 units in the pipeline.

Meanwhile, the total rental volume of private homes crashed 18.4 YoY and 10% QoQ to 19,506 transactions in Q2, no thanks to the Circuit Breaker, which prevented prospective tenants from visiting and viewing properties for lease.

It also cited the URA Rental Index for all residential property, revealing a 1.2% dip QoQ in Q2, following a QoQ rebound of 1.1% in Q1. EDMUND TIE said that it may be due to the reduction of companies’ rental budgets and salaries amidst the economic uncertainties.