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KUALA LUMPUR (Oct 15): Developers launching new projects as the year-end approaches aiming for “a strong finish” could “see their hopes dashed” with the prospect of a fourth wave of Covid-19, the South China Morning Post (SCMP) reported on Tuesday.
According to the daily's report, the spectre of a Covid-19 spike has prompted real estate analysts to predict that “the market may be unable to fully absorb the new supply…”
“The market will see supply of some 11,000 flats in the fourth quarter as developers speed up the launch of new projects,” chief executive of Midland Realty’s residential division Sammy Po told SCMP.
Projects planned for launch include New World Development’s 2,198-unit The Pavilia Farm in Tai Wai in the New Territories.
Among the new projects set for launch include New World Development’s 2,198-unit The Pavilia Farm project in Tai Wai in the New Territories. The developer plans to release at least 180 flats in the first batch, which has already received 7,000 registrations of intent as of Sunday.
“Those developments that are not priced correctly will struggle as buyers are still price-sensitive amid market uncertainties,” said founder and managing director of Habitat Property Victoria Allan.
He added that “prices will be under pressure given the large supply pipeline”.
Meanwhile, Thomas Lam, executive director at Knight Frank said: “Amid the current economic winter, I worry whether such purchasing power can sustain until the end of this year. [We] particularly need to pay attention to whether any big companies will have large-scale lay-offs by the year-end.”
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