More housing supply to drag on price and rental outlook: DBS

Developers’ margins are likely to normalise going forward with increasing public and private housing over the next two years.

According to DBS Vickers, primary sales for the five months have reached 10,867 units, a function of both robust demand and ample supply as developers continue to adopt a quick roll-out strategy. However, whilst volume sales are high, price momentum has moderated with more incentives as a norm in the current new launches. 

"We still hold the view that the increasing supply of public and private housing completions accelerating from 2H12 and over the next two years could drag on price and rental outlook. Hence, developers’ margins are likely to normalise going forward."

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