To ensure that there is enough supply to meet the growing demand for housing and to maintain stability in the market, the government has announced that it will offer 8,505 private residential units in the upcoming 1H2025 Government Land Sales programme.
The Confirmed List will consist of ten plots, including nine residential sites and a residential cum commercial site. These sites have the potential to yield an estimated 5,030 residential units, including 980 executive condo units. This is in line with the 5,050 units offered in the Confirmed List of 2H2024, but is almost 60% higher than the average supply in each GLS programme from 2021 to 2023.
The Reserve List will include four private residential sites, one commercial site, three White sites, and one hotel site, with the potential to yield an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial space.
The increase in supply on the Reserve List is a reflection of the government’s progressive ramp-up of private housing supply in the GLS programmes over the last three years. This has contributed to the stabilisation of the private residential market, as seen in the moderation of property prices. According to the URA private residential property price index, price growth has slowed to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022. It is expected that private residential prices will continue to see more modest gains in 2024, with an estimated increase of 1.6% in the first three quarters of the year.
In response to the stiff competition for executive condo sites and rising land prices, the government has increased the supply of executive condo sites. In the Confirmed List of 1H2025, three plots have the potential to yield 980 units. This is a change from previous GLS programmes since 2019, where only one executive condo site was offered in each half-yearly land sales programme. This increase in supply is expected to ease competition among developers and help moderate executive condo land costs and prices, according to Ismail Gafoor, CEO of PropNex.
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The 1H2025 GLS programme will introduce seven new plots, including a plot in Jurong Lake District, one in the new housing precinct in Bukit Timah Turf City, and one on the former Keppel Golf Course site in Telok Blangah Road. There will also be a plot on Dorsett Road, off Rangoon Road, which can yield about 430 residential units, and a residential and commercial site at Hougang Central, which can yield 835 residential units and over 400,000 sq ft of commercial space. This site is expected to be integrated with the Hougang MRT Station on the Northeast Line.
Furthermore, the Upper Thomson Road (Parcel A) plot that did not receive any bids when its tender closed in June 2024 will also be offered for sale in 1H2025. The URA has provided more flexibility this time, stating that serviced apartment/long-stay serviced apartment use will not be mandated for the site, but can be allowed subject to approval from technical agencies, according to PropNex.
In addition to the sites in two new housing precincts, the majority of the plots are located near MRT stations, making them attractive to both developers and homebuyers. In PropNex’s view, the most attractive sites are the mixed-use plot in Hougang Central, which will be connected to the Hougang MRT station, the Telok Blangah Road site and the Dunearn Road site, both located in new housing precincts and within walking distance to MRT stations, and the Lakeside Drive site, right next to the Lakeside MRT station, Jurong Lake Gardens, and the Jurong East commercial hub.
Overall, the increase in private residential supply through the GLS programmes is expected to help stabilise the market and moderate prices.
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