Government ramps up private housing supply; offers three EC sites on Confirmed List
To ensure that there suffices supply to satisfy real estate need and to keep market balance, the government has sustained the supply of nonpublic property units by supplying 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
10 plots will be supplied under the Confirmed List, making up 9 housing sites, three of which are executive condominium (EC) plots. The tenth plot is a non commercial cum commercial area. The 10 sites can yield an approximated 5,030 residential units, including the 980 EC units.
The increase in the EC land source in 1H2025 can “go some way to ease the opposition among developers in land tenders and help to moderate EC land cost and prices as necessary”, says Ismail Gafoor, CEO of PropNex.
The 3,475 non commercial units on the Reserve Checklist of 1H2025 are greater than the 3,090 units in 2H2024. Including the Reserve List, the general exclusive real estate supply of 8,505 units in 1H2025 is on a level with the 8,140 units in 2H2024.
In regards to household units for sale, it’s in line with the 5,050 units provided in the Confirmed List of 2H2024. Nonetheless, it’s just about 60% higher than the standard source on the Confirmed List in each GLS program from 2021 to 2023.
The Reserve Listing includes four private residential sites, one commercial location, 3 White locations and one hotel site, which can probably produce an extra 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of business spot.
The last time three EC plots were launched for sale in a single GLS programme remained in 2H2014 when EC spots in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were introduced for tender. In 1H2014, 4 EC sites (2 in Yishun, one each in Sembawang and Choa Chu Kang) were released for sale by means of the GLS.
Following the progressive ramp-up of exclusive real estate supply in the GLS programs over the last three years, the supply of private housing units offered available for sale has actually increased gradually from 16,100 units at the end of 2021 to around 21,000 units since end-November 2024.
The ramp-up of supply from the GLS programmes has actually contributed to the stabilisation of the private household market, as reflected by the moderation in property price drive. Based on the URA private residential property price index, cost development has actually moderated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
In view of the rigid challenge for EC locations among property developers and going up EC land costs, the government has actually ramped up the supply of EC sites, with 3 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 site offered in each of the half-yearly land sales programmes, notes PropNex.
Private non commercial prices are anticipated to see even more small gains in 2024, with the cumulative price raise over the first three quarters of the year at around 1.6%.
7 new plots are going to be presented 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 new real estate precinct in Bukit Timah Turf City, and Telok Blangah Road on the former Keppel Golf Course site.
The location of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, that can produce around 430 units, will even be introduced for sale in 1H2025. A residential and commercial site at Hougang Central, that can generate a brand-new mixed-use property development with 835 residential units and over 400,000 sq ft of commercial area, is marketed. It will likely be integrated with the Hougang MRT Terminal on the Northeast Line.
It was an unmatched 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 developer site, and plots in Media Circle (for long-stay serviced apartment use). The URA turned down the proposals offered because they were too reasonable. These sites are currently listed on the 1H2025 Reserve Checklist.
In addition to locations in 2 new housing precincts, the majority of the spots are close to MRT stops, that can appeal to builders and property buyers likewise, notes Gafoor. “In our sight, 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 real estate precincts, and within minutes’ walking to the MRT terminal, in addition to the Lakeside Drive site (575 units) which is right alongside the Lakeside MRT terminal, Jurong Lake Gardens and the Jurong East commercial hub.”
Additionally on the Confirmed Listing is the non commercial plot in Upper Thomson Road (Parcel A), which saw no proposals when its tender finalized in June 2024. Previously, the plot was to provide a mix of non commercial units and long-stay serviced apartments. Of note, the URA has actually provided even more flexibility this moment; it stated that serviced apartment/long-stay serviced apartment usage would not be mandated for the location but can be enabled subject to authorization from technical companies, notes PropNex.
