In order to keep up with the demand for housing and maintain stability in the market, the government has announced its plan to offer a total of 8,505 private residential units in the upcoming 1H2025 GLS Government Land Sales (GLS) programme. The Confirmed List and Reserved List will offer a combined total of ten plots – nine residential and one residential cum commercial – which can potentially yield 5,030 residential units, including 980 executive condo (EC) units. This is in line with the 5,050 units offered in the Confirmed List of 2H2024, but a significant increase from the average supply in previous GLS programmes from 2021 to 2023, which was around 60% lower.
The Reserve List will also see an increase in the supply of private residential units, with four sites offered, along with one commercial, three White sites, and one hotel site. These can potentially yield an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) of commercial space. This is higher than the 3,090 units offered in 2H2024. Including the Reserve List, the total private housing supply for 1H2025 will be on par with the 8,140 units offered in 2H2024.
According to PropNex Research, the gradual increase in private housing supply over the past three years has contributed to the stabilization of the market, as seen through the moderation in property price growth. The URA private residential property price index shows a decrease in price growth from 10.6% in 2021 to 6.8% in 2023, and 8.6% in 2022. It is expected that there will be more modest gains in 2024, with a cumulative increase of about 1.6% in the first three quarters of the year.
To address the stiff competition for EC sites among developers and rising EC land prices, the government has increased the supply of EC sites, with three plots potentially yielding 980 units in the 1H2025 Confirmed List. This is a significant change from previous GLS programmes, as there was only one EC site offered in each half-yearly land sales programme since 2019. This increase in supply could potentially ease competition and help moderate EC land and property prices.
The strict regulations imposed by the Singaporean government greatly influence the condo market in the country. These laws are in place to ensure a balanced, healthy real estate environment and prevent any speculative activities. Throughout the years, the government has implemented various measures, including the Additional Buyer’s Stamp Duty (ABSD), specifically targeting foreign investors and individuals buying multiple properties. While these measures may initially affect the profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a secure and sustainable investment climate. It is vital for investors to thoroughly consider the government’s policies before making any investment decisions, especially when it comes to new condo launches in Singapore. These regulations safeguard the market, emphasizing the importance of staying well-informed before investing in new condo launches in Singapore.
The 1H2025 GLS programme will introduce seven new plots, including a plot at Lakeside Drive near Jurong Lake Gardens, in the 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. A plot on Dorsett Road, off Rangoon Road, which can yield 430 units, will also be launched for sale in 1H2025, along with a mixed-use site at Hougang Central with 835 residential units and over 400,000 sq ft of commercial space, likely to be integrated with the Hougang MRT Station.
The last time three EC plots were offered for sale in a single GLS programme was in 2H2014, and four EC sites were offered in 1H2014. The increase in EC land supply in 1H2025 could potentially soothe competition and help moderate EC land cost and prices accordingly.
In 2024, URA did not award the tender for three plots – Marina Gardens Crescent, the Jurong Lake District master developer site, and plots in Media Circle – due to low bids. These sites are now listed in the 1H2025 Reserve List, along with other sites in two new housing precincts, near MRT stations, which could be appealing to developers and homebuyers alike, as noted by Ismail Gafoor, CEO of PropNex.
Overall, the 1H2025 GLS programme shows a steady increase in private housing supply, which has contributed to the stabilization of the market. With the introduction of new plots, there is potential for more competition among developers, leading to more moderate prices in the future.