In order to meet the high demand for housing and to maintain market stability, the government has announced that it will be offering a total of 8,505 private residential units in the upcoming Confirmed List and Reserved List of the 1H2025 GLS (Government Land Sales) programme. This is a significant increase from the supply offered in the Confirmed List of 2H2024.
Taking the plunge into the world of real estate investment can be an exciting and rewarding endeavor. However, when it comes to purchasing a condo, one must also carefully consider the maintenance and management of the property. Unlike single-family homes, condos often come with additional fees for upkeep and management of common areas and amenities. While these fees may seem like an added expense, they actually contribute to maintaining the property’s value and overall appeal. To make the investment more hands-off, many investors opt to hire a property management company to handle the day-to-day operations of their condo. This allows for a more passive approach to managing the property, making it a wise investment choice for those looking to diversify their portfolio.
The Confirmed List will include ten plots, nine of which are residential sites while the remaining plot is a residential cum commercial site. These ten sites are estimated to yield a total of 5,030 residential units, including 980 executive condominium (EC) units. This is in line with the 5,050 units offered in the Confirmed List of 2H2024, but is 60% higher than the average supply offered in each GLS programme from 2021 to 2023.
In addition to the Confirmed List, the Reserve List will include four private residential sites, one commercial site, three white sites and one hotel site. These 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. This is higher than the 3,090 units offered in the 2H2024 Reserve List.
The overall supply of private housing units in 1H2025, including both the Confirmed and Reserve List, is expected to reach 8,505 units. This is on par with the supply offered in 2H2024, which was 8,140 units.
The steady increase in private housing supply from the GLS programme has contributed to the stabilisation of the private residential market, as shown by the moderation in property price growth. 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.
According to market experts, private residential prices are expected to see more modest gains in 2024, with a cumulative increase of around 1.6% in the first three quarters of the year. This is a result of the competitive bidding among developers for EC sites and the rise in EC land prices.
To address this, the government has ramped up the supply of EC sites, with three plots potentially yielding 980 units in the Confirmed List of 1H2025. This marks a shift from previous GLS programmes since 2019, where only one EC site was offered in each half-yearly land sales programme.
Out of the seven new plots introduced in the 1H2025 GLS programme, three are located near MRT stations and are expected to attract both developers and homebuyers. These include a plot at Lakeside Drive near the Jurong Lake Gardens in the 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.
In addition, the government has made changes to the Dunearn Road plot, providing more flexibility for developers by not mandating the use of serviced apartments. This could lead to a more competitive bidding process for the plot.
It was also noted that the GLS tender process in 2024 was unprecedented, with three plots (Marina Gardens Crescent, the Jurong Lake District master developer site, and plots in Media Circle for long-stay serviced apartments) not being awarded due to low bids. These sites are now included in the 1H2025 Reserve List.
Overall, the GLS programme in the first half of 2025 is expected to meet the high demand for private housing and contribute to market stability.