Singapore property prices may be hurt by supply surge in 2013 and 2014

Local analysts predict house prices in Singapore might fall over the next few years due to a significant increase in supply of completed units.

As reported in the Straits Times newspaper, analysts expect 2013 and 2014 to be the risky years. Statistics from the Urban Redevelopment Authority on homes under construction or already with planning approvals showed that 17,111 new homes will be completed in 2013 and 17,421 in 2014, higher than the record of 14,000 private apartments completed in 1998.

According to Chua Chor Hoon, DTZ’s head of South East Asia research, the numbers could continue to rise when combined with the projects that will get planning permission in the near future.

Together with the supply of new government-built flats, she believed that it could lead to a serious supply spike in a couple of years time.

Sai Min Chow of Nomura Investment Research also noted a possible oversupply next year and the high-end segment in downtown area would suffer from the price falls.