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Government Releases 19 Sites Under 2H2024 GLS : With the recent release of 19 sites under the 2H2024 GLS Programme, developers are presented with new opportunities for growth and expansion. The strategic allocation of residential, commercial, and hotel sites signals a calculated move by the Government to influence market dynamics.
Read about this release of sites at the URA press release : 2024 private housing supply highest since 2013 with latest 2H2024 Government Land Sales (GLS) Programme
The GLS Programme Overview introduces the recent release of 19 sites under the 2H2024 GLS Programme, offering various development opportunities in the real estate sector. These sites, split between the Confirmed and Reserve Lists, are projected to deliver approximately 8,140 residential units, 1.22 million square feet of commercial space, and 530 hotel rooms.
The Confirmed List comprises 8 residential sites, 1 Executive Condominium (EC) site, and 1 mixed-use site, while the Reserve List includes 3 residential sites, 2 EC sites, 1 commercial site, 2 White sites, and 1 hotel site.
This extensive release aims to cater to a wide range of development needs in the private housing market. By providing a mix of residential, commercial, and hotel spaces, the government seeks to stimulate growth and meet the evolving demands of the real estate sector. These sites present lucrative opportunities for developers and investors looking to participate in Singapore’s dynamic property market.
Amidst evolving trends, the private housing market has shown signs of stabilization with a moderated increase in property prices. The private residential property price increase has eased from 8.6% in 2022 to 6.8% in 2023, signaling a positive trend towards market stability.
The inclusion of 5,050 units in the Confirmed List of the 2H2024 GLS Programme, similar to the 1H2024 numbers, is expected to contribute significantly to this stabilization. In 2024, a total of 10,500 private residential units are anticipated to enter the market, marking the highest supply since 2013.
Developers have been exercising caution in their bidding strategies, indicative of a market where buyers are selective and sensitive to pricing. The Government’s proactive role in managing property price dynamics through supply adjustments is evident in the increased supply of 9,250 units in 2023, further supporting the trend towards a more stabilized private housing market.
Developers exhibit caution in their bidding strategies, reflecting market prudence amidst evolving conditions. Recent land tenders have witnessed poor participation, signaling developers’ careful approach to bids. The trend of cautious bidding has resulted in a decrease in the number of bids submitted, as buyers remain selective and price-sensitive.
This cautious behavior by developers is a strategic response to the current market dynamics and conditions. By adjusting their bidding strategies, developers are navigating the uncertainties in the market and making informed decisions to mitigate risks. The subdued interest in land tenders highlights the developers’ focus on assessing the market environment thoroughly before committing to new projects.
This measured approach demonstrates the industry’s adaptability and resilience in responding to changing economic landscapes. As developers tread carefully in their bidding activities, they’re positioning themselves to make thoughtful and calculated investments in line with the evolving market conditions.
Navigating the cautious landscape of recent land tenders, the focus now shifts to the development potential of six new sites released under the 2H2024 GLS.
Looking ahead, the market may see an increase in long-stay serviced apartment units in response to evolving consumer demands.
As these new sites enter the development pipeline, industry players are poised to capitalize on these diverse opportunities for growth and innovation.
The rejection of a bid by a GuocoLand-led consortium for the Marina Gardens Crescent site highlights the competitive nature of the 2H2024 GLS Programme. This White site, situated at Marina Gardens Crescent, attracted significant interest, with the GuocoLand-led consortium making a bid that ultimately fell short. Marina Bay Area continues to be an important element of downtown living with the upcoming site launches there such as Marina View Residences. Closely, there are many Tanjong Pagar sites such as One Bernam 柏南华庭 and Skywaters Residences and TMW Maxwell.
Despite this setback, the 2H2024 GLS Programme is introducing the highest volume of new private housing supply since 2013.
Looking ahead, upcoming projects within the GLS Programme may incorporate long-stay serviced apartment units, showcasing a diverse range of offerings to meet the evolving needs of the market. The competitive landscape of the 2H2024 GLS Programme underscores the importance of strategic planning and robust proposals in securing coveted development sites.
MND’s decision to reduce land supply for private housing in 2H2024 is a strategic move aimed at stabilizing the market and curbing potential oversupply. This adjustment seeks to address the balance between supply and demand in the private housing sector, preventing speculative bubbles.
Developers might encounter difficulties in securing land for new projects, given the decreased availability in the confirmed list. To navigate this challenge, developers could consider optimizing their existing land banks, forming strategic partnerships, or adjusting project plans accordingly.
To ensure stability in the private housing market, the government is implementing a strategic approach focused on moderating potential oversupply and curbing speculation. By reducing land supply, the Ministry of National Development (MND) aims to prevent an imbalance between supply and demand. This strategy underscores the government’s commitment to promoting sustainable growth within the housing sector, prioritizing long-term stability over short-term expansion.
Moreover, the government’s proactive stance on adjusting land supply based on market dynamics serves to maintain housing affordability and accessibility for all segments of society. Through a balanced approach to land allocation, the government seeks to discourage speculative activities that could lead to market distortions and pricing volatility.
As developers navigate the evolving landscape of reduced land availability, they’re encouraged to realign their strategies to ensure a harmonious supply-demand equilibrium. Adapting to the government’s measured approach will be crucial for developers to contribute to a stable and sustainable housing market in the long run.
In response to the reduced land supply in the second half of 2024, developers are strategizing ways to secure land for future projects amidst the challenging market conditions.
Joint ventures or partnerships are being considered as avenues to overcome the limited availability of land.
Adapting project plans to suit the decreased land supply is seen as a viable strategy in the current market environment.
With the scarcity of land for private housing development, developers are contemplating shifting their focus towards other property segments such as commercial or industrial spaces.
It’s essential for developers to carefully assess the impact on project timelines and profitability when adjusting to the reduced land supply.
The dynamic nature of the market necessitates flexibility and innovation in securing land for upcoming developments.
Overall, the release of 19 sites under the 2H2024 GLS Programme by the Government is a strategic move to stabilize the private housing market. With a focus on increasing supply and managing property prices effectively, developers are expected to cautiously bid on the new sites.
This initiative reflects the government’s commitment to ensuring a balanced and sustainable property market for both buyers and developers.