Govt lowers private home supply for first half of 2019
Government Land Sales programme sites for first half of next year lowest since first half of 2007
Concerns about oversupply and slowing demand following the July cooling measures and general economic uncertainty have put the squeeze on the Government Land Sales programme for the first half of next year.
The sites that were listed yesterday for the first half of next year will yield fewer private homes, according to the Ministry of National Development (MND).
It is releasing land that can yield 6,475 private home units - including 910 executive condominium or EC units - the lowest supply since the first half of 2007, when just 5,475 units were offered.
The confirmed list has 2,025 of the 6,475 units while the remaining 4,450 units are in the reserve list.
The upcoming supply is 19.5 per cent lower than the 8,040 units - including 1,210 ECs - released in the second half of the year.
A key concern is the supply pipeline now stands at 45,000 units - comprising 31,000 unsold homes from government land sales and collective sale sites with planning approval, and 14,000 units from sites pending planning approval.
There are also around 28,000 existing vacant private housing units, the MND added.
The upcoming programme will comprise five confirmed list sites, which can be launched regardless of demand, and nine reserve list sites. These are put on sale only when a developer makes an acceptable minimum bid or when there is sufficient market interest.
As well as the 6,475 homes, these sites can yield 86,000 sq m gross floor area (GFA) of commercial space and 1,115 hotel rooms. That compares with the 124,200 sq m GFA of commercial space and 930 hotel rooms in this half.
Analysts said most of the upcoming confirmed list sites have good locations but developers are likely to be selective.
Seven of the 15 sites on the first half of next year confirmed and reserve lists are new: one-north Gateway, Bernam Street, Canberra Link (EC), Fernvale Lane (EC), Dunman Road, Hillview Rise and Sims Avenue.
"Some of the (confirmed list) sites are strategically released to support the residential needs from key development areas like one-north and North Coast Innovation Corridor," said Mr Desmond Sim, CBRE head of research, Singapore & Southeast Asia.
The one-north site should win healthy interest given the development of the one-north area and dearth of new homes nearby.
"In addition, it is in the central region and not affected by the increase of average size of 85 sq m and 100 sq m" from the new Urban Redevelopment Authority guidelines, said Cushman & Wakefield research head Christine Li.