Government ramps up private housing supply; offers three EC sites on Confirmed List
Following the progressing ramp-up of exclusive real estate supply in the GLS programs over the last three years, the inventory of private housing units offered for sale has increased continuously from 16,100 units at the end of 2021 to around 21,000 units as of end-November 2024.
Ten plots are going to be offered under the Confirmed List, consisting of 9 housing sites, three of which are executive condominium (EC) plots. The tenth plot is a residential cum commercial site. The 10 sites can generate an approximated 5,030 household units, featuring the 980 EC units.
The last time 3 EC plots were released for sale in a single 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 introduced for sale through the GLS.
The Reserve Listing consists of four exclusive residential locations, one commercial site, three White spots and one hotel site, that can probably generate an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial place.
Private non commercial costs are expected to see even more moderate growths in 2024, with the collective cost surge over the first three quarters of the year at around 1.6%.
The rise in the EC land supply in 1H2025 might “go some way to lighten the opposition amongst developers in land tenders and help to moderate EC land cost and prices accordingly”, claims Ismail Gafoor, CEO of PropNex.
In terms of residential units for sale, it’s in line with the 5,050 units offered in the Confirmed List of 2H2024. Nevertheless, it’s just about 60% more than the standard source on the Confirmed List in each GLS programme from 2021 to 2023.
The 3,475 household units on the Reserve List of 1H2025 are greater than the 3,090 units in 2H2024. Including the Reserve List, the general private real estate supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
In view of the tight competition for EC sites amongst property developers and going up EC land prices, the state has actually increase the supply of EC sites, with three plots potentially generating 980 units in the Confirmed List of 1H2025. This is a shift from previous GLS programs ever since 2018, with only one EC spot presented in each of the half-yearly land sales programmes, notes PropNex.
To make sure that there is adequate supply to meet housing demand and to maintain market balance, the authorities has sustained the supply of private household units by providing 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
The ramp-up of supply from the GLS programmes has contributed to the stabilisation of the personal property market, as reflected by the moderation in property cost drive. Based on the URA private property price index, rate development has actually moderated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
7 new plots are going to be introduced in the 1H2025 GLS program. They include a plot at Lakeside Drive around 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 site.
Additionally on the Confirmed Checklist is the residential plot in Upper Thomson Road (Parcel A), which observed no bids when its tender finalized 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 provided even more flexibility this time; it claimed that serviced apartment/long-stay serviced apartment usage would not be mandated for the site but can be permitted based on approval from technical companies, notes PropNex.
It was an extraordinary 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 rejected the proposals provided because they were too reasonable. These sites are currently listed on the 1H2025 Reserve Checklist.
Along with locations in two new real estate precincts, most of the spots are near MRT stops, which might interest property developers and property buyers likewise, notes Gafoor. “In our view, the most attractive ones are the mixed-use site in Hougang Central (835 units) that will certainly be attached to the Hougang MRT station, the Telok Blangah Road plot (740 units) and Dunearn Road (370 units) site in brand-new housing precincts, and within minutes’ walk to the MRT stop, 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 hub.”
The location of the previous Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, that can generate about 430 units, will in addition be introduced for sale in 1H2025. A residential and commercial site at Hougang Central, which can generate a brand-new mixed-use development with 835 housing units and over 400,000 sq ft of commercial room, is offered for sale. It will likely be integrated with the Hougang MRT Station on the Northeast Line.
