Government Ramps Private Housing Supply Offers Three Ec Sites Confirmed List
In an effort to meet the increasing demand for housing and maintain stability in the market, the government has announced the supply of 8,505 private residential units in the upcoming 1H2025 GLS Government Land Sales (GLS) programme. This will be offered through ten plots in the Confirmed List and nine plots in the Reserved List.
Among the ten plots in the Confirmed List, there are nine residential sites and one residential cum commercial site. These plots have the potential to yield 5,030 residential units, including 980 units for Executive Condominiums (ECs). While this number is in line with the 5,050 units offered in the 2H2024 Confirmed List, it represents a significant increase of almost 60% compared to the average supply in previous GLS programmes from 2021 to 2023.
The Reserved List includes four private residential sites, one commercial site, three White sites and one hotel site, which could potentially yield an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial space. This is a slight increase from the 3,090 units offered in the Reserved List for 2H2024. With the addition of the Reserved List, the total supply for private housing in 1H2025 remains similar to that of 2H2024, which was 8,140 units.
This increase in supply from the GLS programmes over the last three years has contributed to the stabilisation of the private residential market, leading to a moderation in property price momentum. Based on the URA private residential property price index, the price growth has decreased to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022. It is expected that prices will continue to see more modest gains in 2024, with an estimated cumulative increase of 1.6% over the first three quarters.
To ease the competition among developers for EC sites and control rising land prices, the government has increased the supply of EC sites in the upcoming GLS programme. Three plots are potential yielding 980 units in the Confirmed List for 1H2025, compared to only one EC site in each GLS programme since 2019.
Of the seven new plots introduced, some notable ones include the Lakeside Drive site near Jurong Lake Gardens, the Dunearn Road plot in the new housing precinct of Bukit Timah Turf City, and the Telok Blangah Road plot on the former Keppel Golf Course site. Additionally, the former Singapore Indian Fine Arts Society site on Dorsett Road will also be launched for sale, potentially yielding around 430 units. A mixed-use development with 835 residential units and over 400,000 sq ft of commercial space will also be offered for sale at Hougang Central, expected to be integrated with the Hougang MRT Station on the Northeast Line.
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The latest GLS programme also includes three new housing precincts, with the majority of the plots located near MRT stations. This could be attractive to developers and homebuyers alike, according to Ismail Gafoor, CEO of PropNex.
The previous year saw an unprecedented number of GLS tenders, with the government rejecting three bids: Marina Gardens Crescent, the Jurong Lake District master developer site, and Media Circle for the long-stay serviced apartment use. These sites will now be listed on the Reserved List in 1H2025.
In conclusion, the government’s continued efforts to increase the supply of private residential units have resulted in a steady increase in the inventory available for sale over the last few years. This has contributed to the stabilisation of the market and a moderation in property price momentum. With the upcoming GLS programme offering a diverse range of plots in strategic locations, it is expected to further support the stability of the private residential market.