Government ramps up private housing supply; offers three EC sites on Confirmed List
The Reserve List consists of four private residence sites, one commercial location, 3 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 business spot.
Private residential costs are expected to see even more small increases in 2024, with the cumulative rate surge over the first three quarters of the year at around 1.6%.
In view of the rigid competition for EC sites among developers and going up EC land prices, the authorities has actually ramped up the supply of EC sites, with three plots potentially producing 980 units in the Confirmed Listing of 1H2025. This is a change from previous GLS programmes since 2018, with just one EC spot presented in each of the half-yearly land sales programmes, notes PropNex.
Following the progressive ramp-up of personal housing supply in the GLS programs over the last three years, the stock of exclusive housing units offered up for sale has increased steadily from 16,100 units at the end of 2021 to around 21,000 units as of end-November 2024.
The 3,475 residential units on the Reserve Listing of 1H2025 are greater than the 3,090 units in 2H2024. Including the Reserve Lineup, the total exclusive housing supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
Lakegarden Residences Yuan Ching Road
The last time 3 EC plots were released for sale in a sole GLS programme was in 2H2014 when EC spots in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were released for tender. In 1H2014, four EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were introduced available for sale using the GLS.
Ten plots are going to be offered under the Confirmed List, comprising nine non commercial locations, 3 of which are executive condo (EC) plots. The tenth plot is a housing cum commercial area. The 10 sites can produce an estimated 5,030 housing units, including the 980 EC units.
The increase in the EC land supply in 1H2025 could “go some way to lighten the opposition amongst property developers in land tenders and assist to moderate EC land cost and prices appropriately”, says Ismail Gafoor, CEO of PropNex.
To guarantee that there is adequate supply to fulfill housing demand and to maintain market balance, the state has actually sustained the supply of exclusive property units by using 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) programme 1H2025.
The ramp-up of supply from the GLS programs has added to the stabilisation of the exclusive residential market, as shown by the moderation in property rate momentum. Based on the URA private residential property price index, cost expansion has actually moderated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
In terms of household units for sale, it’s in line with the 5,050 units provided in the Confirmed List of 2H2024. However, it’s almost 60% higher than the regular source on the Confirmed List in each GLS programme from 2021 to 2023.
7 brand-new plots will be introduced in the 1H2025 GLS programme. They consist of a plot at Lakeside Drive near 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 previous Keppel Golf Course area.
Along with locations in 2 brand-new housing districts, the majority of the sites are nearby MRT terminals, that can entice property developers and property buyers as well, notes Gafoor. “In our view, one of the most tempting ones are the mixed-use site in Hougang Central (835 units) that will be linked to the Hougang MRT station, the Telok Blangah Roadway plot (740 units) and Dunearn Road (370 units) site in brand-new housing districts, and within mins’ walk to the MRT station, as well as the Lakeside Drive website (575 units) which is right alongside the Lakeside MRT terminal, Jurong Lake Gardens and the Jurong East business center.”
The location of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, that can yield about 430 units, will in addition be introduced for sale in 1H2025. A residential and commercial site at Hougang Central, which can produce a new mixed-use project with 835 housing units and over 400,000 sq ft of commercial space, is sold. It will likely be incorporated with the Hougang MRT Stop on the Northeast Line.
Additionally on the Confirmed Listing is the residential plot in Upper Thomson Road (Parcel A), which observed no quotes 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 provided even more versatility this time; it said that serviced apartment/long-stay serviced apartment usage would not be mandated for the site but can be enabled subject to approval from technical firms, notes PropNex.
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 developer location, and plots in Media Circle (for long-stay serviced apartment use). The URA refused the quotes offered because they were too reasonable. These locations are currently listed on the 1H2025 Reserve Listing.
