This trio of factors could spell doom or delight for Singapore’s housing-market

There’s a chance the lopsided demand-supply could be tilted.

There remains a sliver of hope for the city-state’s soft housing demand, and in fact, there are actually three factors which could bump the demand-supply outlook in the right direction.
According to analysts from Maybank Kim Eng, one swing factor for the demand outlook could be a review of the long-term population target which was established in 2013. The growth was capped in response to Singapore’s infrastructure shortfall in recent years.

“Recall that population growth was capped in response to Singapore’s infrastructure shortfall in recent years. As Singapore continues its build infrastructure aggressively, including housing, there could be room for a review of the target,” Maybank Kim Eng said.

Additionally, Maybank Kim Eng said Singapore could also revisit its foreign-worker policy which could bump up the demand for housing.

“The number of EP and S Passes it issued in 2015 was less than a quarter of the 47,300 approved during the peak in 2011. If the economy and job creation pick up, we believe the Ministry could adjust its cap,” they said.

Meanwhile, Maybank adds that a revival of en-bloc market could also overturn the supply-demand disparity.

“Land remains in limited supply in Singapore. With the government reining in land supply in its GLS programme, we believe that a revival of the en-bloc market cannot be ruled out as developers seek to replenish landbank from the private land market. This could raise demolition rates and absorb part of the market surplus,” Maybank Kim Eng said.