Government ramps up private housing supply; offers three EC sites on Confirmed List
Following the progressive ramp-up of exclusive housing supply in the GLS programmes over the last 3 years, the stock of private residential units available up for sale has actually increased continuously from 16,100 units at the end of 2021 to around 21,000 units since end-November 2024.
To make certain that there is adequate supply to fulfill real estate demand and to preserve market stability, the state has actually sustained the supply of nonpublic property units by offering 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
Exclusive residential prices are expected to see even more moderate growths in 2024, with the cumulative price surge over the first three quarters of the year at around 1.6%.
Seven new plots will be introduced in the 1H2025 GLS programme. They include a plot at Lakeside Drive nearby the Jurong Lake Gardens in Jurong Lake District, Dunearn Road in the brand-new real estate precinct in Bukit Timah Turf City, and Telok Blangah Road on the former Keppel Golf Course site.
The increase in the EC land supply in 1H2025 can “go some way to soothe the competition amongst property developers in land tenders and assist to moderate EC land cost and prices accordingly”, states Ismail Gafoor, CEO of PropNex.
The 3,475 household units on the Reserve Listing of 1H2025 are more than the 3,090 units in 2H2024. Consisting Of the Reserve Lineup, the general private real estate supply of 8,505 units in 1H2025 is on a level with the 8,140 units in 2H2024.
Also on the Confirmed List is the residential plot in Upper Thomson Road (Parcel A), that observed no bids when its tender finalized in June 2024. In the past, the plot was to offer a blend of residential units and long-stay serviced apartments. Of note, the URA has offered more flexibility this moment; it stated that serviced apartment/long-stay serviced house use would not be mandated for the spot but can be permitted subject to approval from technical firms, notes PropNex.
The last time three EC plots were released for sale in an one GLS program remained in 2H2014 when EC sites in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were launched for tender. In 1H2014, four EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were introduced available for sale through the GLS.
The site of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, that can produce around 430 units, will in addition be launched for sale in 1H2025. A residential and commercial site at Hougang Central, which can yield a brand-new mixed-use development with 835 housing units and over 400,000 sq ft of commercial area, is offered for sale. It will likely be integrated with the Hougang MRT Terminal on the Northeast Line.
Ten plots will be supplied under the Confirmed List, comprising nine housing locations, 3 of which are executive condo (EC) plots. The tenth plot is a residential cum commercial area. The 10 sites can produce an approximated 5,030 residential units, featuring the 980 EC units.
The Reserve List includes 4 exclusive housing sites, one business location, 3 White sites and one hotel site, which can probably produce an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of business space.
It was an unprecedented year for GLS tenders. For the first time, URA did not award the tender for three plots – Marina Gardens Crescent, the Jurong Lake District master property developer location, and plots in Media Circle (for long-stay serviced apartment use). The URA refused the proposals used because they were too reasonable. These locations are now listed on the 1H2025 Reserve List.
In terms of household units for sale, it’s in line with the 5,050 units provided in the Confirmed List of 2H2024. Nonetheless, it’s nearly 60% higher than the average supply on the Confirmed List in each GLS programme from 2021 to 2023.
In view of the tight competition for EC locations among property developers and rising EC land prices, the authorities has ramped up the supply of EC sites, with three plots potentially yielding 980 units in the Confirmed Checklist of 1H2025. This is a change from previous GLS programs since 2018, with just one EC site presented in each of the half-yearly land sales programmes, notes PropNex.
The ramp-up of supply from the GLS programs has actually contributed to the stabilisation of the personal residential market, as mirrored by the moderation in property cost drive. Based on the URA private residential property price index, price growth has actually moderated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
Along with spots in two brand-new real estate districts, the majority of the sites are near MRT stations, which can appeal to property developers and property buyers as well, notes Gafoor. “In our sight, one of the most tempting ones are the mixed-use site in Hougang Central (835 units) that will be attached to the Hougang MRT terminal, the Telok Blangah Roadway plot (740 units) and Dunearn Road (370 units) site in brand-new real estate districts, and within minutes’ walking to the MRT terminal, as well as the Lakeside Drive site (575 units) that is right alongside the Lakeside MRT terminal, Jurong Lake Gardens and the Jurong East commercial center.”
