100,000 units in the pipeline
Urban Redevelopment Authority (URA) revealed yesterday the figure of new private properties in the pipeline has risen to about 100,000 at the end of the third quarter. This spells good news for potential private property owners but bad news for those who have bought for investment or leasing purposes. With such surplus, one would expect the property market to cool in the next few years. Currently, buying sentiment is still going strong due to substantial liquidity in the market and low prevailing interest rates. Many are holding on to their HDB flats and buying private units for investment and leasing purpose, in the hope that the rental income will cover their mortgage loan. Will a housing glut come soon?