Eager mass market home buyers undeterred by looming supply surge

Bulk of unsold inventory belongs to this segment.

Eager mass market property buyers seem undeterred by the looming supply glut in this market segment. Two projects that were launched for sale over the weekend registered surprisingly strong take-ups, suggesting that prices remain sticky despite the impending supply surge.

FCL's North Park Residences sold more than 300 units over the weekend, most which were smaller than 753 square feet and priced below $1m.

Meanwhile, UOL Group's Botanique at Bartley sold around 150 units, most of which were priced at less than $1m.

However, Maybank Kim Eng warned that buyers should be cautious because mass market accounts for 60% of unsold inventory islandwide.

This implies that policy easing for mass market will not come soon, unlike in the high-end segment where sharp price falls amid an artificially suppressed market implies that the segment has the greatest potential for policy easing.

“We remain cautious on the mass-market segment. Unsold inventory has been building up and GLS sites sold in recent years will add to the count,” stated Maybank Kim Eng.