Government ramps up private housing supply; offers three EC sites on Confirmed List
In view of the tight challenge for EC locations amongst property developers and rising EC land prices, the government has increase the supply of EC sites, with 3 plots potentially generating 980 units in the Confirmed Checklist of 1H2025. This is a change from previous GLS programmes since 2018, with just one EC area presented in each of the half-yearly land sales programmes, notes PropNex.
Additionally on the Confirmed Checklist is the residential plot in Upper Thomson Road (Parcel A), that viewed no quotes when its tender finalized in June 2024. Previously, the plot was to offer a blend of residential units and long-stay serviced apartments. Of note, the URA has supplied even more versatility this time; it claimed that serviced apartment/long-stay serviced house usage would not be mandated for the site but can be allowed based on approval from technical firms, notes PropNex.
The last time three 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, 4 EC sites (2 in Yishun, one each in Sembawang and Choa Chu Kang) were launched for sale through the GLS.
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 property developer location, and plots in Media Circle (for long-stay serviced apartment use). The URA declined the proposals provided because they were too reasonable. These spots are currently listed on the 1H2025 Reserve Listing.
Following the progressive ramp-up of personal real estate supply in the GLS programmes over the last three years, the stock 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.
Seven new plots are going to be presented in the 1H2025 GLS programme. They consist of a plot at Lakeside Drive around the Jurong Lake Gardens in Jurong Lake District, Dunearn Road in the new housing precinct in Bukit Timah Turf City, and Telok Blangah Road on the former Keppel Golf Course site.
In addition to locations in 2 brand-new real estate districts, the majority of the sites are close to MRT stops, that could appeal to developers and buyers likewise, notes Gafoor. “In our view, one of the most attractive ones are the mixed-use site in Hougang Central (835 units) that will 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 districts, and within mins’ stroll to the MRT terminal, along with the Lakeside Drive site (575 units) that is right alongside the Lakeside MRT terminal, Jurong Lake Gardens and the Jurong East business hub.”
The ramp-up of supply from the GLS programmes has actually contributed to the stabilisation of the private property market, as shown by the constraint in property cost momentum. Based on the URA private property price index, price development has regulated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
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In regards to 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% more than the regular source on the Confirmed List in each GLS program from 2021 to 2023.
To guarantee that there is adequate supply to fulfill real estate need and to preserve market balance, the government has sustained the supply of private residential units by offering 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
The Reserve List includes four private residence sites, one commercial site, three White spots and one hotel site, that can possibly produce an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial spot.
The 3,475 non commercial units on the Reserve Listing of 1H2025 are more than the 3,090 units in 2H2024. Consisting Of the Reserve Lineup, the general exclusive real estate supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
The rise in the EC land source in 1H2025 can “go some way to lighten the competition amongst property developers in land tenders and assist to moderate EC land cost and prices accordingly”, claims Ismail Gafoor, CEO of PropNex.
Ten plots are going to be supplied under the Confirmed List, making up 9 housing locations, 3 of which are executive condo (EC) plots. The tenth plot is a housing cum commercial site. The 10 sites can yield an estimated 5,030 residential units, featuring the 980 EC units.
Exclusive residential costs are expected to see more modest gains in 2024, with the cumulative rate raise over the first three quarters of the year at around 1.6%.
The location of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, which can yield about 430 units, will in addition 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 housing units and over 400,000 sq ft of commercial area, is offered for sale. It will likely be integrated with the Hougang MRT Station on the Northeast Line.
