Projected demand and supply of condos in Singapore.

Projected Demand and Supply of Condos in Singapore

Demand

• Despite the prevailing high-interest rate environment, private residential resale prices have held steady in the third quarter of 2024, indicating a resilient demand for condos.
• The forecast for 2024 suggests that prime residential prices might see a slight fall, but this could lead to a point of stabilisation in prices as demand adjusts to the market conditions.
• Strong demand is anticipated for new launches, particularly for projects with favorable locations and amenities. For example, a new 500-unit condo project is expected to see strong demand due to its attractive features.

Supply

• The supply of new condo units is expected to be moderate in 2024, with several new launches anticipated. However, the total number of unsold condo units has been increasing, from 14,330 units in 2021 to 17,256 units in the latest period, indicating a potential surplus in supply.
• The Government Land Sales (GLS) program for 2024 will introduce new sites, which could add to the supply of condos in the coming years. However, there is some concern about whether the market can absorb this increased supply.
• From 2025 onwards, the high-end residential market is expected to see less new supply, which could help stabilize prices as demand and supply balance out.

Overall, while demand remains relatively strong, the market is closely watching the balance between demand and the increasing supply of condo units, especially with new launches and GLS sites coming online.