SINGAPORE, Dec 7 — As demand from property developers drops due to cooling measures introduced in July, the Government has lowered its land supply for private housing for the first half of 2019 (1H2019).
The Urban Redevelopment Authority (URA) of Singapore said in a press release yesterday that 14 sites would be released in the Government Land Sales (GLS) programme for the first six months of 2019.
The 1H2019 programme comprises five Confirmed List sites and nine Reserve List sites. These sites can yield about 6,475 private residential units, 86,000 sqm gross floor area (GFA) of commercial space and 1,115 hotel rooms, said the authority.
The URA said the decision to moderate the total supply of private residential units for the latest GLS programme was driven by declining transaction volumes and lower demand for land from developers due to property cooling measures.
The land supply for the latest GLS programme is a slight decrease from the previous two exercises in 2018, which had 15 sites (six on the Confirmed List and nine on the Reserve List) for each six-month period.
“The supply of private housing units in the pipeline has grown significantly and is currently at 45,000 units,” said the URA.
It added that there are around 28,000 existing private housing units that remain vacant.
With the new sites announced yesterday and the supply in the pipeline, the URA said that “this will sufficiently cater” to the housing needs of Singapore’s population.
How the numbers compare
First half of 2019 (estimated total yield):
6,475 private residential units
1,115 hotel rooms
86,000 sqm GFA of commercial space
Second half of 2018:
Private residential units: 8,040
Hotel rooms: 930
Commercial space: 124,200 sqm GFA
First half of 2018:
Private residential units:8,045
Hotel rooms: Not applicable
Commercial space: 63,960 sqm GFA
First half of 2017:
Private residential units: 7,465
Hotel rooms: Not applicable
Commercial space: 158,080 sqm GFA
What property experts say
Desmond Sim, head of research, Singapore & South-east Asia, CBRE:
“The GLS programme released this morning is an indication of the market outlook for the next six to 12 months.
“The Confirmed List is still expected to yield 2,025 units as some of the sites listed are strategically released to support the residential needs from key development areas like one-north and North Coast Innovation Corridor.
“On the back of a much-improved tourism market the hotel industry seeks to add new hotel offerings to match this demand and industry players can trigger sites from the Reserve List when needed.”
Lee Sze Teck, head of research, Huttons Asia:
“The site at Clementi is in a mature estate with plenty of amenities and good schools. There is potential demand from upgraders and investors. Launched in February 2017, The Clement Canopy was sold out within a year, a testament to the strong demand for private homes in the Clementi estate.
“The URA Master Plan 2014 aims to build a vibrant downtown area where more housing options will be offered. The site at Bernam Street is one step to achieve that vision. Being in the Central Area, this site is also exempted from URA’s control on the maximum number of dwelling units. This means that developers can offer smaller units to cater to the demand of buyers.” — TODAY