Government ramps up private housing supply; offers three EC sites on Confirmed List
To guarantee that there suffices supply to satisfy real estate demand and to preserve market balance, the government has actually sustained the supply of nonpublic household units by using 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) programme 1H2025.
10 plots will be supplied under the Confirmed List, making up nine housing sites, three of which are executive condo (EC) plots. The tenth plot is a non commercial cum commercial area. The 10 sites can generate an approximated 5,030 housing units, including the 980 EC units.
In addition to sites in two new housing districts, the majority of the sites are nearby MRT stations, that might appeal to property developers and homebuyers likewise, notes Gafoor. “In our view, one of the most attractive ones are the mixed-use site in Hougang Central (835 units) that will certainly be attached to the Hougang MRT terminal, the Telok Blangah Road plot (740 units) and Dunearn Road (370 units) site in brand-new real estate districts, and within mins’ stroll to the MRT stop, in addition to the Lakeside Drive site (575 units) that is right alongside the Lakeside MRT station, Jurong Lake Gardens and the Jurong East commercial center.”
Exclusive residential prices are expected to see even more small growths in 2024, with the collective rate raise over the first 3 quarters of the year at about 1.6%.
Seven brand-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 housing precinct in Bukit Timah Turf City, and Telok Blangah Road on the previous Keppel Golf Course area.
The rise in the EC land source in 1H2025 could “go some way to lighten the competition amongst property developers in land tenders and guide to moderate EC land cost and prices accordingly”, states Ismail Gafoor, CEO of PropNex.
The last time 3 EC plots were released for sale in an one GLS programme remained in 2H2014 when EC sites in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were launched for tender. In 1H2014, 4 EC sites (2 in Yishun, one each in Sembawang and Choa Chu Kang) were released for sale via the GLS.
In view of the rigid competition for EC locations among property developers and increasing EC land rates, the state has ramped up the supply of EC sites, with 3 plots potentially generating 980 units in the Confirmed Listing of 1H2025. This is a shift from previous GLS programmes since 2018, with just one EC site presented in each of the semiannual land sales programmes, notes PropNex.
The 3,475 non commercial units on the Reserve Listing of 1H2025 are more than the 3,090 units in 2H2024. Including the Reserve Lineup, the overall private housing supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
In terms of household units for sale, it’s in line with the 5,050 units provided in the Confirmed List of 2H2024. Nevertheless, it’s just about 60% more than the standard supply on the Confirmed List in each GLS program from 2021 to 2023.
The Hill @ One North Singapore
Also on the Confirmed Checklist is the non commercial plot in Upper Thomson Road (Parcel A), that viewed no bids when its tender shut in June 2024. Previously, the plot was to offer a blend of non commercial units and long-stay serviced apartments. Of note, the URA has actually offered more flexibility this time; it stated that serviced apartment/long-stay serviced house usage would not be mandated for the spot but can be allowed based on authorization from technical companies, notes PropNex.
The Reserve List consists of 4 private residential locations, one commercial location, 3 White spots and one hotel site, that can potentially generate an extra 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial spot.
The ramp-up of supply from the GLS programs has added to the stabilisation of the private property market, as reflected by the moderation in property cost drive. Based on the URA private property price index, cost expansion has actually regulated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
The site of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, which can produce about 430 units, will in addition be launched for sale in 1H2025. A residential and commercial site at Hougang Central, that can generate a new mixed-use property development with 835 housing units and over 400,000 sq ft of commercial space, is sold. It will likely be integrated with the Hougang MRT Terminal on the Northeast Line.
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 site, and plots in Media Circle (for long-stay serviced apartment use). The URA rejected the quotes supplied because they were too low. These spots are now listed on the 1H2025 Reserve Listing.
Following the progressive ramp-up of exclusive real estate supply in the GLS programmes over the last three years, the stock of exclusive residential units offered up for sale has actually increased steadily from 16,100 units at the end of 2021 to around 21,000 units since end-November 2024.
