The government is making efforts to ensure that there is a sufficient supply of private residential units to meet the high demand for housing and maintain market stability. This is evident in the 1H2025 GLS Government Land Sales (GLS) programme, where a total of 8,505 units will be offered in both the Confirmed List and Reserved List.
The Confirmed List will feature ten plots, with nine of them being residential sites and three executive condo (EC) plots. The remaining plot will be a residential cum commercial site. These ten sites have the potential to yield around 5,030 residential units, including 980 EC units. This is in line with the 5,050 units offered in the Confirmed List of the 2H2024 program, but it is significantly higher than the average supply in previous GLS programs from 2021 to 2023.
In addition to the Confirmed List, the Reserved List will also be offering four private residential sites, one commercial site, three White sites, and one hotel site. These sites have the potential to yield an additional 3,475 private residential units and 199,900 sqm (2.15 million sq ft) of commercial space.
Compared to the 2H2024 program, the Reserve List in 1H2025 will offer higher residential unit yield of 3,475 units, up from 3,090 units. This brings the total private housing supply in 1H2025 to 8,505 units, similar to the 8,140 units offered in the 2H2024 program.
This increase in supply over the past three years has contributed to the stabilization of the private residential market, as shown by the moderation in property price momentum. According to the URA private residential property price index, price growth has slowed to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022. It is expected that private residential prices will continue to see modest gains in 2024, with a cumulative increase of 1.6% in the first three quarters of the year.
One important factor to consider when looking into investing in a condo is its potential rental yield. This refers to the annual rental income generated in relation to the property’s purchase price. In Singapore, rental yields for condos can differ greatly based on various factors such as location, condition of the property, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, tend to yield better rental returns. It is crucial to conduct thorough market research and seek advice from real estate agents to gain a better understanding of the rental potential for a specific condo, especially for Singapore projects. This will help in making an informed decision when considering an investment in a condo.
In response to the intense competition among developers for EC sites and rising land prices, the government has increased the supply of EC sites in the 1H2025 Confirmed List, with three plots having the potential to yield 980 units. This is different from the previous GLS programs since 2019, where only one EC site was offered in each half-yearly land sales program. This increased supply of EC sites is expected to ease the competition among developers and help moderate EC land costs and prices, according to PropNex CEO Ismail Gafoor.
Seven new plots have been introduced in the 1H2025 GLS program, including a site 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. The site of the former Singapore Indian Fine Arts Society on Dorsett Road, off Rangoon Road, will also be launched for sale in 1H2025, with the potential to yield about 430 units. Furthermore, a residential and commercial site at Hougang Central, which can yield a new mixed-use development with 835 residential units and over 400,000 sq ft of commercial space, will also be offered for sale. This site will likely be integrated with the Hougang MRT Station on the Northeast Line.
Of note, the URA has provided more flexibility for the Upper Thomson Road (Parcel A) site, which saw no bidders when its tender closed in June 2024. The site was previously intended to have a mix of residential units and long-stay serviced apartments, but the URA has now stated that serviced apartments are not mandated for the site and can be allowed with approval from technical agencies.
It was an unprecedented year for GLS tenders, as for the first time, the 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. The URA rejected the bids offered because they were considered too low. These sites are now listed on the 1H2025 Reserve List.
Overall, the majority of the sites in the 1H2025 GLS program are located near MRT stations and new housing precincts, which can be attractive for developers and homebuyers alike. Examples include the mixed-use site in Hougang Central, which can yield 835 units and will be connected to the Hougang MRT station, and the Telok Blangah Road and Dunearn Road sites, which are located within minutes’ walk to the MRT stations. Another notable site is the Lakeside Drive site, situated next to the Lakeside MRT station, Jurong Lake Gardens, and the Jurong East commercial hub.…