Many property market participants remain in denial about the housing oversupply situation, with investors and real estate agents hoping that the outlook will improve while they ignore the growing difficulties in securing tenants amid stiff competition among landlords.
It should be clear by now that the residential property segment is heavily oversupplied.
Vacancies of private homes at 7.1 per cent equate to more than 21,000 empty units at the end of last September, Urban Redevelopment Authority (URA) data showed. Meanwhile, the stock of vacant Executive Condominiums (ECs) rose sharply to 2,375 units, or 16.2 per cent, at the end of September from 1,634 units, or 12.2 per cent at the end of June. And more homes are being built, putting further pressure on the market. We can expect a total residential supply of 150,689 units within three years and possibly another 35,000 units in 2018.