The Government has maintained its supply of dwelling units under its 1H 2025 GLS programme.
In total, there will be 10 sites offering a total of 5,030 dwelling units under the Confirmed List. This is similar to 2H 2024 GLS programme’s 5,050 units.
The Government did not raise its supply of dwelling units despite recent strong sales results in launches. They may have seen it as an once-off and the market remains well-supplied.
Supply of Dwelling Units under Government Land Sales Programme
Source: MND, Huttons Data Analytics
Participation from developers
The level of participation from developers however might not be much different from the current situation.
The lower interest rate environment might allow developers more room to tweak their bids for land. However, the robust sales take-up of recent projects also raises the probability of the Government stepping in to stabilise the market. Thus, developers are likely to be cautious so as to manage any potential downside risks.
The participation in GLS land tenders has also changed after ABSD was raised several times after 2018. Based on Huttons Data Analytics’ examination of the tenders, there were more joint ventures (JV) among unrelated parties after Covid. If there was no JV, the level of participation in GLS land tenders would be higher.
This manner of bidding for land could have been done to spread the risks. It is likely to be the norm moving forward.
Key points in 1H 2025 GLS Programme Confirmed List
There are 3 key things to take note in the 1H 2025 GLS Programme Confirmed List.
- There is no SA2 site with the Media Circle site shifted to the Reserve List
- The Upper Thomson Road (Parcel A) site no longer has SA2 component
- There are 3 EC sites
The adjustment to SA2 shows the Government’s willingness to listen to market feedback and flexibility in allocating land use to market demand.
This may be the first time since the 2H 2014 GLS programme that 3 EC sites have been offered for sale on the Confirmed List.
The Senja Road (EC) and Woodlands Drive 17 (EC) sites were moved from the Reserve List to meet demand for an affordable housing option.
The Senja Road (EC) site is the first to be offered since 2H2010 when a parcel of land for EC along Segar Road was sold. This will allow HDB upgraders to move within the estate.
The strong response to the first private residential project in Woodlands in over 12 years, Norwood Grand may have prompted the move of Woodlands Drive 17 (EC) to the Confirmed List. It is a short walk to the Woodlands South MRT station.
The Sembawang Road (EC) site is in a private residential enclave. ECs are usually in HDB neighbourhoods and seldom in a private residential enclave. It is a short distance to Canberra MRT station.
Top sites
The Hougang Central mixed-use site, Telok Blangah Road and Dunearn Road sites may see good interest among buyers and developers.
The Hougang Central integrated transport hub site offers connectivity and convenience and such sites usually see good interest from developers and sell well on launch weekend. This will be the first major mall to serve Hougang estate. It could be the first integrated transport hub above a MRT interchange.
The Telok Blangah Road site is the first GLS site in Telok Blangah after 25 years. The last GLS site was Harbour View Towers in 1990. This is the first GLS site in the Greater Southern Waterfront. It is a short walk to Telok Blangah MRT station and very close to the Harbourfront Precinct.
The Dunearn Road site is the first site to be offered in the former Turf City housing estate under the Stables Commune neighbourhood. It is close to numerous top schools and the Sixth Avenue MRT station.
Other Sites
The Lakeside Drive site is one of the last two plots next to Lakeside MRT station and is close to the Jurong Lake District.
Hot on the heels of the launch of the Chuan Grove site in Dec 2024, the Government is offering another site in Chuan Grove for sale. Besides meeting the potential demand for housing in this private residential enclave, this may also temper the bids for the two sites.
The Upper Thomson Road (Parcel A) site did not receive any bid previously because it has a SA2 component. Now that it is a residential site with a small retail space, it should attract interest. It is one of the two sites to have doorstep access to Springleaf MRT station.
The Dorset Road site is in a city fringe location and a short walk to Farrer Park MRT station. The recent project in the area, Piccadilly Grand sold 77% of its units on launch weekend, reflecting strong interest in living in the area.
With many attractive sites in the Confirmed List, the sites in the Reserve List are unlikely to be triggered for sale.
