Surge in new homes 'will push rents, prices down'
Rising supply comes amid projected slower population growth: Report
A record surge in the supply of new homes is likely to trigger a drop in rents and prices by up to 15 per cent between now and 2016 amid tepid population growth, a report warned yesterday.
A total of 100,000 new private non-landed homes and 123,000 Housing Board homes are expected to be completed by 2017, said research house Religare.
This translates to a 7 to 8 per cent expansion in the yearly supply of new non-landed homes.
Mr Ku Swee Yong, chief executive of property consultancy International Property Advisor, said if the forecast pans out, it will be the fastest-ever growth in the supply of new non-landed homes.