When purchasing a Singapore condo, it is crucial to factor in the maintenance and management of the property. Typically, condos have maintenance fees that cover the upkeep of shared areas and amenities. Although these fees may increase the overall cost of ownership, they play a vital role in keeping the property in good condition and maintaining its value. By hiring a property management company, investors can have a more hands-off approach to managing their condos, making it a more passive investment.
To ensure a healthy supply of private housing units to meet the increasing demand and maintain market stability, the government has announced that it will offer 8,505 units in the upcoming 1H2025 GLS (Government Land Sales) programme for private residential development. This will be through a combination of Confirmed List and Reserved List sites.
The Confirmed List will include ten plots, comprising nine residential sites and one residential cum commercial site. These sites are expected to yield an estimated 5,030 residential units, including 980 executive condo (EC) units. This number is in line with the Confirmed List of 2H2024, but almost 60% higher than the average supply in each GLS programme from 2021 to 2023.
On the other hand, the Reserved List will comprise four private residential sites, one commercial site, three White sites, and one hotel site. These sites have the potential to yield an additional 3,475 private residential units and a gross floor area (GFA) of 199,900 sqm for commercial space.
This increase in supply of 8,505 units in 1H2025 is on par with the supply of 8,140 units in 2H2024. This is in line with the government’s progressive ramp-up of private housing supply in the GLS programmes over the last three years. This has contributed to the stabilisation of the market, as seen in the moderation of property price growth.
According to the URA private residential property price index, price growth has slowed to 6.8% in 2023 from 10.6% in 2021 and 8.6% in 2022. It is expected that private residential prices will see more modest gains in 2024, with an estimated cumulative increase of 1.6% over the first three quarters of the year.
To soothe the competition among developers for EC sites and to moderate EC land costs and prices, the government will ramp up the supply of EC sites in the Confirmed List, with three plots potentially yielding 980 units. This is a change from previous GLS programmes, where only one EC site was offered in each half-yearly land sales programme since 2019.
The last time three EC plots were launched for sale in a single GLS programme was in 2H2014 when EC sites in Sembawang Road/Canberra Link, Anchorvale Crescent, and Woodlands Avenue 12 were launched for tender. In 1H2014, four EC sites (two in Yishun, one each in Sembawang and Choa Chu Kang) were launched for sale via the GLS.
The increase in the EC land supply in 1H2025 could help soothe competition among developers and moderate EC land costs and prices, according to PropNex CEO Ismail Gafoor.
Seven new plots will be introduced in the 1H2025 GLS programme, including a plot near Jurong Lake Gardens in the Jurong Lake District, a plot in the new housing precinct in Bukit Timah Turf City, and a plot on the former Keppel Golf Course site. Another plot will be launched for sale at Hougang Central, which can yield a mixed-use development with 835 residential units and 400,000 sq ft of commercial space. It is expected to be integrated with the Hougang MRT Station on the Northeast Line.
The other confirmed plots include a site in Upper Thomson Road (Parcel A), which saw no bids when its tender closed in June 2024. The plot was previously intended to offer a mix of residential units and long-stay serviced apartments. The URA has now provided more flexibility by allowing serviced apartment/long-stay serviced apartment use, subject to approval from technical agencies.
In addition to sites in new housing precincts, the majority of the sites are near MRT stations, which could be attractive to developers and homebuyers. The most attractive sites include the mixed-use site in Hougang Central (835 units) linked to the Hougang MRT station, the Telok Blangah Road plot (740 units) in a housing precinct within walking distance to the MRT station, and the Lakeside Drive site (575 units) adjacent to the Lakeside MRT station, Jurong Lake Gardens, and Jurong East commercial hub.
Last year was unprecedented for GLS tenders, with three plots – Marina Gardens Crescent, the Jurong Lake District master developer site, and plots in Media Circle (for long-stay serviced apartment use) – going unfulfilled. This was due to the low bids offered, and these sites are now included in the 1H2025 Reserve List.
The government is continuously reviewing and adjusting the supply of private residential units to ensure market stability and meeting housing demand. The GLS programme is an essential tool for this, and the new sites in the 1H2025 programme aim to cater to the residential and commercial needs of Singaporeans.