RESIDENTIAL PROPERTY | Staff Reporter, Singapore

2,100 nano flats to be launched until 2020

First-time buyers might still prefer them over Starter Homes Scheme.

A new supply of nano flats, those with a saleable area below 200 sqft, will amount to an average of 510 units per years between 2017 and 2020, JLL revealed.

According to its Residential Sales Report, the new expected supply is higher than the average of 151 units between 2014 and 2016.

JLL said the new supply represents about 2.4% of the total. The majority of the flats will be located in the New Territories.

Nano flats are expected to target first-time buyers, the same audience as in the government’s newly announced Starter Homes Scheme.

Henry Mok, regional director of Capital Markets at JLL, said, "Most first-time buyers can afford property costs within HKD 6 million. However, that budget would only enable them to buy a sizeable flat at old housing estates (those over 30-years-old) in urban areas given prices having reached record high levels. Given the preference of first-time buyers for newer housing options, they may still resort to purchasing nano flats with more affordable lump sum price tags. All in all, strong demand from buyers with a genuine need for housing is likely to push prices up further."

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