Government ramps up private housing supply; offers three EC sites on Confirmed List
The last time three EC plots were released for sale in a single 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, 4 EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were introduced available for sale via the GLS.
The rise in the EC land source in 1H2025 could “go some way to lighten the opposition amongst developers in land tenders and guide to moderate EC land cost and prices appropriately”, says Ismail Gafoor, CEO of PropNex.
In regards to household units for sale, it’s in line with the 5,050 units offered in the Confirmed List of 2H2024. Nevertheless, it’s almost 60% greater than the regular supply on the Confirmed List in each GLS programme from 2021 to 2023.
The ramp-up of supply from the GLS programmes has actually contributed to the stabilisation of the exclusive property market, as reflected by the constraint 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.
The location of the previous Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, which can yield around 430 units, will also be launched for sale in 1H2025. A residential and commercial site at Hougang Central, which can yield a brand-new mixed-use development with 835 residence units and over 400,000 sq ft of commercial space, is marketed. It will likely be integrated with the Hougang MRT Terminal on the Northeast Line.
Also on the Confirmed Listing is the residential plot in Upper Thomson Road (Parcel A), which saw no proposals when its tender closed in June 2024. Previously, the plot was to provide a blend of non commercial units and long-stay serviced apartments. Of note, the URA has actually supplied even more flexibility this time; it said that serviced apartment/long-stay serviced apartment use would not be mandated for the location however can be permitted based on authorization from technical agencies, notes PropNex.
Following the progressing ramp-up of exclusive real estate supply in the GLS programs over the last 3 years, the supply of private housing units available up for sale has actually increased continuously from 16,100 units at the end of 2021 to around 21,000 units as of end-November 2024.
The Reserve Checklist consists of 4 exclusive housing sites, one commercial site, 3 White sites and one hotel site, which can possibly yield an added 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of business space.
Ten plots are going to be supplied under the Confirmed List, comprising nine non commercial sites, 3 of which are executive condo (EC) plots. The tenth plot is a residential cum commercial area. The 10 sites can generate an estimated 5,030 housing units, including the 980 EC units.
Exclusive residential prices are expected to see even more moderate gains in 2024, with the cumulative cost increase over the first 3 quarters of the year at about 1.6%.
Along with spots in two brand-new real estate precincts, most of the sites are close to MRT stops, that could attract builders and property buyers alike, notes Gafoor. “In our sight, the most tempting ones are the mixed-use site in Hougang Central (835 units) that will be attached to the Hougang MRT station, the Telok Blangah Roadway plot (740 units) and Dunearn Road (370 units) site in new housing precincts, and within mins’ stroll to the MRT terminal, in addition to the Lakeside Drive site (575 units) which is right next to the Lakeside MRT terminal, Jurong Lake Gardens and the Jurong East commercial hub.”
To guarantee that there suffices supply to meet housing demand and to keep market stability, the government has actually sustained the supply of nonpublic property units by offering 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
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 location, and plots in Media Circle (for long-stay serviced apartment use). The URA rejected the proposals used because they were too low. These spots are now listed on the 1H2025 Reserve List.
In view of the stiff challenge for EC sites amongst developers and rising EC land prices, the state has actually ramped up the supply of EC sites, with 3 plots potentially producing 980 units in the Confirmed Checklist of 1H2025. This is a change from previous GLS programmes since 2018, with just one EC spot presented in each of the semiannual land sales programmes, notes PropNex.
The 3,475 household units on the Reserve List of 1H2025 are more than the 3,090 units in 2H2024. Including the Reserve List, the general exclusive housing supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
Seven brand-new plots are going to 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 development in Bukit Timah Turf City, and Telok Blangah Road on the previous Keppel Golf Course area.
