Future private residential property supply is increasing, with the latest figures from the House Conditions Bureau indicating that the potential future supply has risen above 100,000 units for the first time in three to four years. This increase is attributed to both approved completed sites and unsold units under construction. According to the House Conditions Bureau's latest report on the private residential first-hand market supply statistics for the third quarter, the number of units in this category has risen to 100,000, a 4,000-unit increase from the previous quarter. The figures represent the second-lowest in the past four years, a decrease of about 10.7% from the historical high of around 112,000 units in the first quarter of 2024. Significantly, approximately 91% of the new supply is expected to be of smaller units, totaling about 91,000 units, as these make up most of the 100,000 units. This trend is expected to continue, with the House Conditions Bureau forecasting that ten residential plots will turn into developed sites in the near future, potentially providing about 10,800 units. Industry experts, such as GK Ko, CEO of Galaxia Estate Agency, note that while the increase in supply is positive, it is distributed over a longer time frame, with the additional units gradually released according to market conditions, thus minimizing immediate pressure on the market.
With the increase in future potential supply, developments under construction and approved housing plots are expected to provide a steady stream of new units. This comes as government efforts to increase housing land supply continue, with the targets set to remain at a higher level over the next three to four years. Experts like GK Ko believe that the supply structure is continually improving, with a focus on upcoming developed sites and mid-term unsold units, which will be gradually released based on market dynamics. This approach is expected to prevent a concentration of supply, which could otherwise cause immediate market pressure.