Huttons' comments on 1H 2021 GLS programme
The 1H 2021 GLS programme saw an increase in the number of dwelling units by 17.1% to 1,605. This marks the first significant increase in units supply since 2H 2017.
The increase in supply is a response to healthy demand in the market. The uncompleted unsold units have been declining since 1Q 2019 to 26,483 units. The recent GLS land tender for land too saw a large number of bidders and the en-bloc market has also witnessed 2 collective sales in the span of two weeks.
Perhaps in cognizant that the effects of the pandemic may continued to be felt in the next few quarters, the land supply has not been bumped up more.
However the supply of land appears to be concentrated in only two areas - one-north and Tampines. Granted that there has not been new supply in these two areas for many years, putting all the eggs in one basket may be a bit too late to address the demand.
The site at Lentor Central will inject fresh supply into the area and allows all stakeholders to tap into the potential of Lentor MRT station which will be completed soon.
Without a good spread of sites across the island, developers will have to turn to the en-bloc market to seek choice sites and a new en-bloc cycle is expected to take place in 2021.