Government bumps up private housing supply; three EC sites offered on Confirmed List

To ensure a sufficient supply to cater to housing demand and maintain market stability, the Government has made available 8,505 units across the Confirmed List and Reserve List under the upcoming Government Land Sales (GLS) Programme for 1H2025, maintaining the pipeline of private residential supply starting in January 2025.

Ten sites will be released on the Confirmed List, comprising nine residential sites—three of which are Executive Condominium (EC) plots—and one commercial and residential site. These 10 sites are expected to yield 5,030 residential units, including 980 EC units.

The number of residential units launched is in line with the 5,050 units offered on the 2H2024 Confirmed List. However, this is nearly 60% higher than the average supply per GLS Confirmed List between 2021 and 2023.

The Reserve List comprises 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 sq m (2.15 million sq ft) of gross floor area (GFA) for commercial space.

The 3,475 residential units on the 1H2025 Reserve List represent an increase from the 3,090 units in 2H2024. Including the Reserve List, the total private housing supply for 1H2025 stands at 8,505 units, comparable to the 8,140 units in 2H2024.

With the progressive ramp-up of private housing supply under the GLS Programme over the past three years, the inventory of private residential units available for sale has steadily increased from 16,100 units at the end of 2021 to about 21,000 units by late November 2024.

The increased supply under the GLS Programme has contributed to greater stability in the private residential market, reflected in the moderation of property price growth. According to the URA Private Residential Property Price Index, price growth eased from 10.6% in 2021 and 8.6% in 2022 to 6.8% in 2023.

Private residential prices are expected to post more modest gains in 2024, with cumulative price growth in the first three quarters of the year standing at around 1.6%.

In view of intense competition among developers for EC sites and rising EC land prices, the Government has ramped up the supply of EC land, offering three sites on the 1H2025 Confirmed List that can potentially yield 980 units. This is a departure from previous GLS programmes since 2018, where only one EC site was offered per half-yearly land sales programme.

The last time three EC sites were launched for sale under a single GLS programme was in 2H2014, when EC plots at Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were put up for tender. 

In 1H2014, four EC sites (two in Yishun, and one each in Sembawang and Choa Chu Kang) were launched for sale via the GLS.

The increased land supply in 1H2025 may "help temper land bidding competition among developers to some extent, and accordingly assist in moderating land costs and prices."

The 1H2025 GLS Programme will introduce seven new sites. These include Lakeside Drive near Jurong Lake Gardens in the Jurong Lake District, Dunearn Road in the new Bukit Timah Turf City residential precinct, and Telok Blangah Road on the former Keppel Club golf course site.

The former Singapore Indian Fine Arts Society site along Dorset Road near Rangoon Road will also be launched for sale in 1H2025, which can yield about 430 units. A commercial and residential site at Hougang Central is being offered, which could be developed into a new integrated development comprising 835 residential units and over 400,000 sq ft of commercial space. It is likely to be integrated with Hougang MRT station on the North East Line.

Also on the Confirmed List is the Upper Thomson Road (Parcel A) residential site, which received no bids when its tender closed in June 2024. The site was previously meant to offer a mix of residential units and long-stay serviced apartments. Notably, URA is offering greater flexibility this time around; the serviced apartment/long-stay serviced apartment component will not be mandatory, but can be permitted subject to approval from technical agencies.

It has been an unprecedented year for GLS tenders. For the first time, URA did not award three sites—the master developer site at Jurong Lake District, Marina Gardens Crescent, and a site at Media Circle (zoned for long-stay serviced apartments)—rejecting the bids as they were deemed too low. These sites have now been placed on the 1H2025 Reserve List.

Gafoor noted that apart from the plots within the two new housing precincts, most of the sites are located near MRT stations, which will likely appeal to developers and home buyers alike. "In our view, the most attractive sites are the Hougang Central mixed-use site (835 units) that will be linked to Hougang MRT station, the Telok Blangah Road site (740 units) and the Dunearn Road site (370 units) in new residential estates just a short walk to MRT stations, as well as the Lakeside Drive site (575 units) right next to Lakeside MRT station, Jurong Lake Gardens, and the Jurong East commercial hub."