Developers scramble to clear unsold units on back of looming flat glut

Sales will remain sluggish in 2015.

Buyers should expect fewer new property launches this year as developers remain focused on moving their unsold stock on back of the anticipated flat glut.

According to DBS, buying demand will remain weak in 2015 with demand for new units remaining tepid due to ongoing government curbs. Primary sales are forecasted to be in the range of 8,000-9,000 units.

“We believe property developers will continue to focus on clearing unsold inventories in their books. Landbanking activities are likely to remain selective, given further cuts in the GLS in 1H15. With unsold inventory on the rise and the industry facing a deluge of new unit completions in 2014/2015, we expect a price dip of c.15% over 2015/16,” stated the report.