Government maintains land supply under 1H 2020 land sales programme
The potential supply of homes works out to be 6,490 - as compared to the previous 6,430 units.
The Singapore government has maintained the number of private residential sites listed under the 1H 2020 Government Land Sales (GLS) programme.
The new land supply comprises a total of 3 sites under the Confirmed List, 8 sites under the Reserve List. These sites can yield around 6,490 private residential units; commercial space spanning around a gross floor area (GFA) of approximately 114,000 square meters, and 1,070 rooms for hotel developments.
Solely based on the 3 sites on the confirmed list, the supply of private homes is projected to be around 1,775. This is still 3.5 percent more than the projected number from the 2H 2019 GLS programme.
As for the reserve list sites, the amount of private homes planned is 4,715. This is the same projection as compared to the reserve list announced for 2H 2019. These sites will only be triggered for sale via receiving a substantial bid from a property developer.
It was noted by the Ministry of National Development (MND) that the recent number of property transactions have been modest despite the rising demand for private homes has increased over the last 2 quarters.
In addition, developers have also remained cautious when it comes to land acquisition for private housing.
Furthermore, the amount of private homes in the pipeline still remains high with approximately 39,000 unsold condo units in Singapore, despite the fact that the number has progressively been reduced over the last couple of quarters.
Looking at the supply pipeline, there is an estimated amount of 34,000 units from GLS and en-bloc sites which are still unsold. And there are another 5,000 units from sites which are still pending for planning approval.
As a result, the Singapore government has made a decision to maintain the levels of land supply for 1H 2020 GLS programme.
Among the 3 confirmed sites include an executive condo (EC) site located in Yishun, 1 private residential site at Tanah Merah Kechil Link; a mixed-use residential & commercial site at Jalan Anak Bukit.
These sites can yield a total of 1,775 private residential units (including 600 executive condo units) and 22,000 square meters (based on GFA) of commercial space.
On the other hand, the reserve list consists of 4 private residential sites (including 1 site for EC), and 1 hotel site. These sites have the potential to yield around 4,715 private homes (inclusive of 595 executive condo units), 92,000 square meters of commercial space, and 1,070 rooms for hotel development.