Pending housing supply slumps 33% to 17,000 units under construction in 2017

Analysts, however, believe this is no cause for alarm as staggered housing launches will still be sufficient.

The number of private residential units under construction fell by a third (33%) to 17,000 units in 2017, according to data from the Housing & Transport Bureau. 

This marks a considerable decrease from 25,500 units recorded under construction in 2016.

Experts, however, wave off worries off supply shortage as the collective amount of staggered housing unit launches will still be sufficient to plug the housing gap. 

“Despite a drop in private residential units which commenced construction in 2017, the annual average for the last five years (2013-2017) was still 51% higher than that produced between 2007-2012,” said JLL associate director of research Ingrid Cheh. 

Cheh added that the staggered roll-out of flats will mean that the supply pipeline is still higher as the average of 20,000 units per year in the next five years would mean a 47% increase from completion levels in 2013-2017.

Data from the HTB also suggest that this is no cause for alarm as adding up unsold units in completed projects, units under construction and units from disposed sites would result to a supply pipeline of 97,000 residential units which will be available in the next three to four years.

“With the market focus still largely on the primary sales market, we expect the inventory held by developers to be absorbed given still-strong buying sentiment, albeit at a more gradual pace,” said Cheh.