In order to maintain a stable housing market and meet the demand for housing, the government is taking steps to ensure an adequate supply of private residential units. Under the 1H2025 Government Land Sales (GLS) programme, a total of 8,505 units will be offered in the Confirmed List and Reserved List.
The Confirmed List will consist of ten plots, including nine residential sites and one residential cum commercial site. These sites can potentially yield an estimated 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 the 2H2024 GLS programme, but significantly higher compared to the average supply in each GLS programme from 2021 to 2023.
The Reserved List will include four private residential sites, one commercial site, three White sites, and one hotel site. These sites can 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 higher than the 3,090 units offered in the 2H2024 Reserved List. Overall, the private housing supply for the 1H2025 GLS programme, including the Reserved List, is on par with the 8,140 units offered in the 2H2024 GLS programme.
According to PropNex Research, the gradual increase in private housing supply in the GLS programmes over the past three years has resulted in an increase in the inventory of private residential units available for sale, from 16,100 units at the end of 2021 to around 21,000 units as of end-2024. This has contributed to the stabilization of the private residential market, as reflected by the moderation in property price momentum. The private residential property price index by URA shows that price growth has moderated from 10.6% in 2021 to 6.8% in 2023 and 8.6% in 2022. It is expected that the private residential prices will continue to see modest gains in 2024, with a cumulative increase of around 1.6% in the first three quarters of the year.
In light of the competition for EC sites among developers and rising EC land prices, the government has increased the supply of EC sites in the 1H2025 GLS programme. Three plots are expected to yield 980 units in the Confirmed List, compared to only one EC site offered in each half-yearly land sales programme since 2019. This could potentially help to moderate EC land cost and prices, according to PropNex CEO Ismail Gafoor.
When purchasing a Condo, it is crucial to also think about the maintenance and management of the property. Unlike a traditional home, condos usually have maintenance fees that cover the upkeep of common areas and amenities. Although these fees contribute to the overall cost of owning a condo, they also guarantee that the property stays in good condition and maintains its value. For investors looking for a more hands-off approach, hiring a property management company can assist with the daily management tasks of their Condo investment through its passive nature. For more information on Condo investments, visit Condo.
The 1H2025 GLS programme will introduce seven new plots, including a site at Lakeside Drive near Jurong Lake Gardens in the Jurong Lake District, as well as Dunearn Road in the new housing precinct in Bukit Timah Turf City, and Telok Blangah Road on the former Keppel Golf Course site. Other notable sites include a residential and commercial site at Hougang Central, which could be integrated with the Hougang MRT station, and a site at Upper Thomson Road (Parcel A), which was previously listed on the 2H2024 GLS programme and saw no bids when its tender closed in June 2024. The site now offers greater flexibility in terms of land use, with serviced apartment/long-stay serviced apartment use no longer mandated but subject to approval from technical agencies.
The majority of the sites in the 1H2025 GLS programme are near MRT stations, making them attractive to developers and homebuyers alike. These include a mixed-use site in Hougang Central (835 units) connected to the Hougang MRT station, the Telok Blangah Road plot (740 units), the Dunearn Road (370 units) site in a new housing precinct, and the Lakeside Drive site (575 units) next to the Lakeside MRT station, Jurong Lake Gardens, and the Jurong East commercial hub.
In the past year, there have been unprecedented incidents where the URA did not award the tender for three GLS sites due to bids being deemed too low. These sites, including Marina Gardens Crescent, the Jurong Lake District master developer site, and plots in Media Circle are now listed on the 1H2025 Reserved List.