The government’s commitment to meeting housing demand and maintaining market stability is evident in the upcoming Confirmed List and Reserved List of the 1H2025 GLS Government Land Sales (GLS) programme. In total, 8,505 units will be offered, consisting of 10 plots on the Confirmed List and nine plots on the Reserved List.
It is crucial for international investors to have a clear understanding of the various regulations and limitations surrounding property ownership in Singapore. Unlike landed properties which have more stringent ownership rules, foreigners can typically purchase condominiums with relative ease. However, they are subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property acquisition. Despite the added expenses, the steady and promising growth of the Singapore real estate market remains a magnet for foreign investment. This is evident in the continued interest and demand for new condo launches in the country.
On the Confirmed List, nine residential sites will be offered, along with one residential cum commercial site. Three of the residential plots are executive condo (EC) sites, which can yield a total of 980 units. This brings the estimated total number of residential units to 5,030. The number of residential units to be offered is in line with the 5,050 units on the Confirmed List in 2H2024, but is nearly 60% higher than 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 combined have the potential to 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 increase in supply is in line with the government’s continuous efforts to stabilize the private residential market. The progressive ramp-up of supply from the GLS programmes over the last three years has resulted in an increase in the overall inventory of private residential units available for sale, from 16,100 units at the end of 2021 to approximately 21,000 units as of end-2024.
As a result of these efforts, the private residential market has seen a 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 experience modest gains in 2024, with a cumulative increase of around 1.6% in the first three quarters of the year.
The government’s focus on stabilizing the market is further evident in the increase in supply of EC sites, with three plots potentially yielding 980 units on the Confirmed List of 1H2025. This is a significant increase from previous GLS programmes since 2019, which only offered one EC site in each half-yearly land sales programme.
The government is also introducing seven new plots in the 1H2025 GLS programme. These include 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. Additionally, 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 be offered for sale and likely be integrated with the Hougang MRT Station on the Northeast Line.
The increase in supply of EC sites and the introduction of new plots in desirable locations near MRT stations show the government’s commitment to meeting demand and maintaining market stability. This is a strategic move that is expected to help soothe competition among developers and moderate EC land costs and prices accordingly.