The government is taking measures to ensure a steady supply of private residential units to meet housing demand and maintain market stability. As part of the 1H2025 Government Land Sales (GLS) programme, a total of 8,505 units will be offered in the Confirmed List and Reserved List.
Under the Confirmed List, ten plots will be made available, including nine residential sites and one residential cum commercial site. These plots are expected to yield a total of 5,030 residential units, including 980 units for executive condos (ECs). This number is similar to the 5,050 units offered in the Confirmed List of the previous 2H2024 GLS programme, but significantly higher than the average supply in the GLS programmes from 2021 to 2023.
In addition, 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) of commercial space.
The government has been gradually increasing the supply of private housing through the GLS programmes over the past three years. This 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 also helped to stabilize the private residential market, as seen in the moderation of property price growth. For instance, the URA private residential property price index shows a decrease in price growth from 10.6% in 2021 to 6.8% in 2023.
Moving forward, it is expected that private residential prices will continue to see a more modest increase, with a projected 1.6% increase in the first three quarters of 2024. To mitigate rising land prices for ECs, the government has increased the supply of EC sites, with three plots offering 980 units in the 1H2025 Confirmed List. This is a change from the previous GLS programmes, which only offered one EC site in each half-yearly land sales programme.
The upcoming 1H2025 GLS programme includes seven new plots, including locations near MRT stations and new housing precincts. These plots are expected to attract developers and homebuyers alike, with the most desirable ones being the mixed-use site in Hougang Central, a plot near Lakeside MRT station, and a site near Jurong East commercial hub.
Investing in a condo in Singapore offers several advantages, with one of the most significant being the potential for capital appreciation. As a global business hub, Singapore boasts a strategic location and strong economic fundamentals, which result in a consistent demand for real estate. This demand has contributed to a steady increase in property prices over the years, particularly in prime locations. Therefore, investors who time their entry into the market well and hold onto their properties for an extended period can reap the benefits of substantial capital gains. In addition, exploring the various Singapore projects available can provide valuable insights into the best investment opportunities in the city.
It is worth noting that the URA has provided more flexibility for the residential plot in Upper Thomson Road (Parcel A) this time, allowing for serviced apartment/long-stay serviced apartment use with approval from technical agencies.
In the previous GLS tenders, three plots were not awarded due to low bids, including Marina Gardens Crescent, the Jurong Lake District master developer site, and plots in Media Circle (for long-stay serviced apartment use). These sites are now placed on the 1H2025 Reserved List.
Overall, the government’s measures to ensure a steady supply of private residential units have contributed to market stability. With the upcoming GLS programme, it is expected that the private residential market will continue to see moderate growth.