Government land sales programme for 1H2024

SINGAPORE, 6 December 2023 - The Government today announced the Government Land Sales (GLS) Programme for the first half of 2024 (1H2024), which comprises ten Confirmed List sites and nine Reserve List sites. 

Ms. Chia Siew Chuin, Head of Residential Research, Research & Consultancy, Singapore

The government maintains an ample supply of residential land as part of its multi-prong approach to maintaining a sustainable housing market

The 1H2024 GLS programme exhibits the government's strategy to maintain an ample allocation of land supply for private housing, promoting a more sustainable and varied housing market.

Under the Confirmed List, while the 5,450 units (including executive condominiums or ECs) to be made available in 1H2024 represent the seventh consecutive half-yearly increase in supply, the magnitude of expansion has moderated to 5.6% in 1H2024 from 26.2% in 2H2023. Excluding ECs, the 4,740 units represents just a 3.0% rise compared to 2H2023. The supply count continues to maintain an ample allocation for private housing, but refrains from oversaturating the market, keeping in mind the forthcoming projects in the immediate term.

The distribution of housing supply (including ECs) on the 1H2024 Confirmed List is the highest in the Outside Central Region (OCR) with 3,060 units (56.1%), followed by the Rest of Central Region (RCR) with 1,330 units (24.4%) and the Core Central Region (CCR) with 1,060 units (19.4%). The larger supply of 3,060 units in the OCR is a 17.9% increase from the 2,595 units made available for the market segment under the 2H2023 Confirmed List and is intended to cater to the resilient demand from local buyers. The Confirmed List supply in the CCR has also been raised from 270 units from 2H2023 to 1,060 units in 1H2024, to ensure a continuous supply of units in the market segment to cater to local demand notwithstanding the impact of the hike in Additional Buyer’s Stamp Duty rate on foreigner and investment buying demand in the locale. This creates an opportunity for developers to landbank in the CCR via the GLS programme given the persistent mismatch in price expectations between developers and sellers in the private land sales market.

A notable site on the 1H2024 Confirmed List is the 0.95-ha plot at Margaret Drive.
The plot is located amid the mature HDB estates of Queenstown and Commonwealth, near the Queenstown MRT station. With the potential to generate a medium-scale development of about 460 units, it is expected to generate keen interest from developers given the lack of new project launches in the area and the potential pool of buyers, including HDB flat upgraders in the vicinity and local buyers looking for homes in city fringe. The last project launched in the locale was Margaret Ville in 2018.

River Valley Green (Parcel A) is expected to be well received by developers for a few reasons. It offers convenient direct access to the Great World MRT station, which enhances its accessibility and is also near to the CBD and a range of amenities including the Great World City as well as retail and F&B offerings at the Singapore River. The site is smaller in size compared to Zion Road (Parcel A) which was released on 4 December 2023, resulting in a lower quantum for potential developers and therefore more palatable against a backdrop of increasing development costs and shrinking profit margins. Furthermore, the absence of long-stay serviced apartments requirements on the subject River Valley Green site lessens upfront capital expenditure and mitigates risks for developers. However, project feasibility could hinge on technical requirements considering that it is adjacent to the MRT station.

The Holland Drive site is appealing due to its proximity to Holland Village and the Holland Village MRT station on the Circle Line. However, its substantial size of over 622,000 sq ft of gross floor area which can generate about 680 residential units, may result in a bid price exceeding $1 billion. The sizeable price quantum could potentially make consortiums more likely contenders for the site.

Developers are expected to show a strong interest in the Jalan Loyang Besar (EC) site. Its advantageous location near the Pasir Ris MRT interchange, Pasir Ris Mall, and White Sands makes it an attractive site. The future EC project will also offer unobstructed view of the sea, further enhancing its uniqueness and appeal.

The Media Circle site is designated for long-stay serviced apartments. While it does not cater to the buying demand, it provides developers the opportunity to enter the rental accommodation market and cater to demand in the one-north and Singapore Science Park areas.