Government ramps up private housing supply; offers three EC sites on Confirmed List
In view of the rigid challenge for EC locations amongst developers and increasing EC land rates, the state has increase the supply of EC sites, with three plots potentially generating 980 units in the Confirmed List of 1H2025. This is a shift from previous GLS programmes ever since 2018, with only one EC spot presented in each of the semiannual land sales programmes, 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 property developer location, and plots in Media Circle (for long-stay serviced apartment use). The URA rejected the quotes used because they were too low. These spots are currently listed on the 1H2025 Reserve Checklist.
To make sure that there is adequate supply to meet real estate need and to maintain market balance, the authorities has actually sustained the supply of nonpublic residential units by providing 8,505 units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) program 1H2025.
Ten plots are going to be offered under the Confirmed List, making up nine housing locations, 3 of which are executive condominium (EC) plots. The tenth plot is a non commercial cum commercial area. The 10 sites can yield an estimated 5,030 residential units, consisting of the 980 EC units.
The 3,475 household units on the Reserve Listing of 1H2025 are greater than the 3,090 units in 2H2024. Consisting Of the Reserve Lineup, the total private housing supply of 8,505 units in 1H2025 is on a the same level with the 8,140 units in 2H2024.
The site 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, which can generate a new mixed-use property development with 835 residence units and over 400,000 sq ft of commercial area, is offered for sale. It will likely be incorporated with the Hougang MRT Terminal on the Northeast Line.
In addition to sites in 2 brand-new real estate precincts, most of the sites are close to MRT stops, which can attract developers and property buyers likewise, notes Gafoor. “In our view, the most attractive ones are the mixed-use site in Hougang Central (835 units) that will be linked to the Hougang MRT terminal, the Telok Blangah Road plot (740 units) and Dunearn Road (370 units) site in brand-new housing precincts, and within mins’ walk to the MRT stop, along with the Lakeside Drive site (575 units) that is right beside the Lakeside MRT station, Jurong Lake Gardens and the Jurong East business center.”
Additionally on the Confirmed Checklist is the non commercial plot in Upper Thomson Road (Parcel A), which observed no bids when its tender closed in June 2024. In the past, the plot was to provide a mix of non commercial units and long-stay serviced apartments. Of note, the URA has actually offered more versatility this time; it stated that serviced apartment/long-stay serviced apartment usage would not be mandated for the site but can be enabled based on authorization from technical companies, notes PropNex.
The last time three EC plots were released for sale in an one GLS program remained in 2H2014 when EC sites in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were introduced for tender. In 1H2014, four EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were introduced for sale using the GLS.
The Reserve List includes four private residential sites, one commercial location, three White sites and one hotel site, that can potentially produce an added 3,475 private residential units and 199,900 sqm (2.15 million sq ft) gross floor area (GFA) of commercial spot.
The rise in the EC land supply in 1H2025 can “go some way to soothe the opposition among property developers in land tenders and assist to moderate EC land cost and prices accordingly”, says Ismail Gafoor, CEO of PropNex.
Exclusive residential prices are anticipated to see more modest gains in 2024, with the collective rate increase over the first 3 quarters of the year at about 1.6%.
The ramp-up of supply from the GLS programmes has added to the stabilisation of the exclusive household market, as shown by the constraint in property rate drive. Based on the URA private residential property price index, cost growth has actually moderated to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022.
Following the progressive ramp-up of personal housing supply in the GLS programmes over the last three years, the stock of exclusive housing units offered 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 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 new housing development in Bukit Timah Turf City, and Telok Blangah Road on the former Keppel Golf Course area.
In terms of residential units for sale, it’s in line with the 5,050 units provided in the Confirmed List of 2H2024. Nonetheless, it’s just about 60% greater than the standard supply on the Confirmed List in each GLS programme from 2021 to 2023.
