The Ministry of National Development (MND) recently trimmed the total number of proposed housing units under the Government Land Sales (GLS) Programme for the first half of 2015, amidst the sluggish residential market and a significant upcoming supply of 78,402 units between late-2014 and 2018, noted property consultants.
Under the latest exercise, the government plans to release six confirmed and 13 reserve list sites, which will yield 1,010 executive condominiums (ECs) and 7,765 private homes amounting to 8,775 units.
Specifically, there are 490 EC units and 2,530 private homes on the confirmed list and 520 ECs and 5,235 private units on the reserve list.
Chia Siew Chuin, Colliers International’s Director of Research & Advisory, said: “It is surprising that the number of private non-EC residential units on the Confirmed List went up marginally from the supply of 2,395 units in 2H 2014 to 2,530 units in 1H 2015, while the non-EC units on the Reserve List for 1H 2015 was trimmed by 17 percent to 5,235 units.
“Still, the total supply of 8,775 housing units was the lowest number of new residential units made available via the half-yearly GLS Programme since 2H 2009, when some 8,655 housing units were put up.”
Desmond Sim, Head of CBRE Research for Singapore & Southeast Asia, added that the reduction was expected as it would allow the market to absorb unsold inventory.
In spite of the lower numbers and lacklustre private housing market, several residential sites under the GLS Programme for 1H 2015 have attractive attributes and are likely to appeal to developers, added Chia.
These include the land parcel on Sturdee Road due to its proximity to town and the upcoming Bendemeer MRT station, while the site along Dundee Road is close to Queenstown MRT station and adjacent to the recently launched Commonwealth Towers.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
