Private residential supply trimmed again in 1H16 GLS Programme

Demand won’t pick up anytime soon.

The latest Government Land Sales (GLS) Programme saw a slight drop in private home supply, to 7,420 units in the latest round from 7,825 units in the second half of 2015.

Colliers noted that this marks the fifth consecutive quarter of contraction for private home supply, as the number of potential private residential units has been on a downtrend since 1H 2014.

The government will continue to keep a lid on new residential supply as the market continues to be weighed down by a glut of private condominium units.

“As long as the cooling measures and loan curbs remain in place, coupled with the Federal Reserve’s rate hike announcement yesterday, sentiments in the private residential market is expected to remain subdued. We are already witnessing a fall in overall private homes prices during the year and we expect it will continue to soften by another 4-6% during 2016,” Colliers said.