3 factors could boost housing demand

Maybank Kim Eng said there are three factors that could help Singapore bump up the demand supply outlook for its residential market, reported Singapore Business Review.

Firstly, the country could review its long-term population target established in 2013, where growth was capped in response to the infrastructure shortfall seen in recent years.

“Recall that population growth was capped in response to Singapore’s infrastructure shortfall in recent years. As Singapore continues its build infrastructure aggressively, including housing, there could be room for a review of the target,” noted Maybank Kim Eng.

To boost demand for housing, Singapore may also revisit its foreign-worker policy.

“The number of EP and S Passes it issued in 2015 was less than a quarter of the 47,300 approved during the peak in 2011. If the economy and job creation pick up, we believe the Ministry could adjust its cap.”

Maybank believes that a revival of the en-bloc market may help overturn the supply-demand disparity.

“Land remains in limited supply in Singapore. With the government reining in land supply in its GLS programme, we believe that a revival of the en-bloc market cannot be ruled out as developers seek to replenish landbank from the private land market. This could raise demolition rates and absorb part of the market surplus,” it added.