Govt to rein in supply of private housing released in 2nd half of 2019
Move to tackle supply glut amid slowing demand
Amid a slowdown in the property market and a souring business outlook, the Government will rein in the supply of private housing being released in the second half of this year.
The aim is to avoid a supply glut and the squeeze has been applied particularly hard on confirmed sites under the government land sales (GLS) programme, which are put up for sale on pre-determined dates.
Only 1,715 housing units - including 480 executive condo (EC) units - will be up for grabs on the five confirmed list sites in the second half of the year. This is 15.3 per cent less than the 2,025 such units offered in the first six months of this year.
For the year as a whole, only 2,875 private residential units - excluding ECs - would have been released into the market through the confirmed list. This is the lowest since 2014 according to consultancy JLL, when the total debt servicing ratio (TDSR) was imposed to ensure that property buyers don't overextend themselves.
In the past five years, the supply of private homes under the confirmed list has ranged from 3,095 units to 4,355 units, JLL added.
Colliers International said: "The Singapore government has maintained a cautious approach to its land sales programme...in view of the ample supply of housing units in the pipeline and the relatively muted residential property market."
Including the reserve list, which can be triggered for sale only if there is sufficient market interest, a total of 6,430 potential units are on offer.
There are eight reserve list plots in the upcoming GLS programme that can yield 4,715 units, 92,000 sq m gross floor area of commercial space and 1,100 hotel rooms, the Ministry of National Development (MND) said yesterday.
But analysts also note that the upcoming slate allows more flexibility in land use through white sites, where a range of uses is allowed, such as at the proposed 9.2 ha site in Kampong Bugis .
Since the property cooling measures were introduced in July last year, demand has continued to fall, with overall transaction volumes declining for a third straight quarter in the first quarter this year, and developers' demand for land also moderated, MND said.
Further, there is a large supply of 44,000 private housing units in the pipeline while around 24,000 existing private housing units remain vacant.