The government has taken steps to maintain a healthy balance between housing supply and demand by offering a total of 8,505 private residential units in the upcoming 1H2025 GLS Government Land Sales (GLS) programme. This includes 10 plots in the Confirmed List, comprising of nine residential sites and one residential cum commercial site. These 10 sites are expected to yield an estimated 5,030 residential units, including 980 executive condo (EC) units. The number of residential units being offered is in line with the 5,050 units offered in the Confirmed List of 2H2024, but almost 60% higher than the average supply on the Confirmed List in each GLS programme from 2021 to 2023.
In addition, the Reserve 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) gross floor area (GFA) of commercial space. The 3,475 residential units on the Reserve List of 1H2025 are higher than the 3,090 units in 2H2024. With the inclusion of the Reserve List, the overall private housing supply of 8,505 units in 1H2025 is on par with the 8,140 units in 2H2024.
The progressive increase in private housing supply over the last three years has contributed to the stability of the private residential market, as reflected by the moderation in property price momentum. Based on the URA private residential property price index, price growth has slowed down to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022. It is expected that private residential prices will experience more modest gains in 2024, with a cumulative price increase of around 1.6% over the first three quarters of the year.
When purchasing a Singapore condo, it is crucial to also take into consideration the maintenance and management of the unit. Typically, condos come with maintenance fees that cover the upkeep of shared areas and amenities. While these fees may increase the overall cost of ownership, they play a vital role in ensuring that the property remains well-maintained and retains its value. To make investing in a condo a more passive venture, investors can enlist the help of a property management company to handle the day-to-day management of their unit.
To cater to 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 Confirmed List of 1H2025. This is a shift from previous GLS programmes since 2019, where only one EC site was offered in each half-yearly land sales programme. Seven new plots will also be introduced in the 1H2025 GLS programme, including a plot at Lakeside Drive near the Jurong Lake Gardens in 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. These plots are expected to be highly attractive to both developers and homebuyers, as they are in close proximity to MRT stations and other amenities.
The last time three EC plots were launched for sale in a single GLS programme was in 2H2014, highlighting the government’s efforts to maintain a balance in the housing market. In addition, the URA has provided more flexibility for the residential plot in Upper Thomson Road (Parcel A), allowing for serviced apartment/long-stay serviced apartment use subject to approval from technical agencies.
It is worth noting that for the first time, URA did not award the tender for three plots – 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 listed on the 1H2025 Reserve List. With the majority of the sites in close proximity to MRT stations, it is expected that these sites will be highly sought after by developers. Overall, the increase in private residential supply from the GLS programmes has contributed to market stability, and the government’s careful and strategic allocation of sites is expected to continue to maintain a healthy balance between supply and demand.