Conflicting signals spark property debate

HOW strong is demand in the Singapore residential property market? The picture is different depending on what one looks at. And this has not just sparked a debate in property circles but could pose a dilemma in future government land sales.

If one goes by buying demand - as reflected by the encouraging residential sales this year - the market is vibrant. But the actual housing demand - which refers to the demand for owner-occupied and rental housing - sends a different signal if one looks at vacancy rates.

This apparent disconnect between buying demand and actual demand is fanning the hot debate in property circles: whether there is an oversupply or undersupply situation.