Government ramps up private housing supply; offers three EC sites on Confirmed List
Ten plots are going to be supplied under the Confirmed List, consisting of 9 residential sites, 3 of which are executive condominium (EC) plots. The tenth plot is a non commercial cum commercial site. The 10 sites can generate an estimated 5,030 residential units, including the 980 EC units.
The location of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, which can produce around 430 units, will even be released for sale in 1H2025. A residential and commercial site at Hougang Central, that can generate a new mixed-use development with 835 residential 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.
Additionally on the Confirmed Checklist is the non commercial plot in Upper Thomson Road (Parcel A), which saw no quotes when its tender closed in June 2024. In the past, the plot was to offer a mix of non commercial units and long-stay serviced apartments. Of note, the URA has actually offered more flexibility this moment; it stated that serviced apartment/long-stay serviced house use would not be mandated for the spot but can be enabled subject to authorization from technical firms, notes PropNex.
In view of the stiff competition for EC sites amongst property developers and increasing EC land costs, the state has increase the supply of EC sites, with 3 plots potentially generating 980 units in the Confirmed Listing of 1H2025. This is a shift from previous GLS programs since 2018, with just one EC site presented in each of the half-yearly land sales programmes, notes PropNex.
Seven brand-new plots are going to be introduced in the 1H2025 GLS program. They consist of a plot at Lakeside Drive nearby 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 previous Keppel Golf Course area.
The ramp-up of supply from the GLS programmes has actually contributed to the stabilisation of the exclusive residential market, as shown by the moderation in property rate momentum. Based on the URA private property price index, rate growth has actually regulated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
Following the progressive ramp-up of private housing supply in the GLS programmes over the last three years, the inventory of private residential units available for sale has actually increased continuously from 16,100 units at the end of 2021 to around 21,000 units since end-November 2024.
The 3,475 non commercial units on the Reserve Listing of 1H2025 are greater than the 3,090 units in 2H2024. Consisting Of the Reserve Lineup, the overall exclusive real estate supply of 8,505 units in 1H2025 is on a par with the 8,140 units in 2H2024.
Private non commercial costs are anticipated to see even more modest growths in 2024, with the collective cost increase over the first 3 quarters of the year at around 1.6%.
The Reserve Checklist consists of 4 exclusive housing sites, one business site, 3 White locations and one hotel site, that can probably yield an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial place.
The increase in the EC land supply in 1H2025 can “go some way to lighten the competition among property developers in land tenders and guide to moderate EC land cost and prices as necessary”, states Ismail Gafoor, CEO of PropNex.
In terms of household units for sale, it’s in line with the 5,050 units offered in the Confirmed List of 2H2024. Nonetheless, it’s nearly 60% more than the standard source on the Confirmed List in each GLS program from 2021 to 2023.
The last time three EC plots were released for sale in a sole GLS programme remained in 2H2014 when EC sites in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were launched for tender. In 1H2014, 4 EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were released available for sale via the GLS.
To make sure that there suffices supply to satisfy real estate need and to maintain market balance, the authorities has maintained the supply of exclusive 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.
In addition to locations in 2 new real estate districts, most of the sites are near MRT stops, that might attract developers and homebuyers 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 linked to the Hougang MRT station, the Telok Blangah Roadway plot (740 units) and Dunearn Road (370 units) site in new housing districts, and within minutes’ walking to the MRT terminal, as well as the Lakeside Drive website (575 units) which is right next to the Lakeside MRT station, Jurong Lake Gardens and the Jurong East business center.”
It was an extraordinary 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 offered because they were too reasonable. These locations are currently listed on the 1H2025 Reserve Checklist.
