MND Reduces Private Housing Land Supply in H2 Confirmed List

The government has announced the release of land for 5,050 housing units in the H2 list, a 7% decrease from H1. However, the annual total remains the highest since 2013.

After seven consecutive increases in land supply for private homes under its confirmed list, the government is reducing the supply by 7.3% for the next half-year.

On Tuesday (June 25), the Ministry of National Development (MND) stated that it will release land capable of generating approximately 5,050 private housing units through the confirmed list of the H2 2024 Government Land Sales (GLS) programme, down from 5,450 units in H1 2024.

Market analysts noted that this moderate reduction aligns with the recent lackluster results at state land tenders, as developers become more cautious due to increasingly selective homebuyers.

Tricia Song of CBRE commented that pausing the increase in supply is a prudent move to avoid oversupply.

Despite the reduction, analysts highlighted that the 5,050-unit private housing supply for H2 still represents a significant amount. This will bring the total annual supply to 11,110 private housing units (including 610 units from Zion Road (Parcel B) triggered for release from the reserve list), marking the highest annual figure since 2013's 12,895 units.

Confirmed list sites are launched for sale according to a set schedule, regardless of demand.

New sites in the latest confirmed list include a plot in Chuan Grove for about 550 private homes and a commercial and residential site in Chencharu, a new housing area in Yishun, which can yield about 875 private homes and 13,000 square meters of commercial space.

Other new plots include a site in Holland Link for 240 homes and another in Faber Walk for about 400 homes. Additionally, the list includes potential developments for Geylang condos, which continue to attract interest from both developers and homebuyers.