Land supply for private housing to be reduced by 15% in 2H2019 GLS: MND

By
/ EdgeProp Singapore
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June 6, 2019 7:39 PM SGT
The government will reduce the supply of private residential units on the confirmed list for the 2H2019 government land sales (GLS) programme, the Ministry of National Development (MND) announced on Thursday, June 6.
There are five confirmed list sites and eight reserve list sites in the 2H2019 GLS programme. The sites can yield around 6,430 private residential units, 990,280 sq ft gross floor area (GFA) of commercial space and 1,100 hotel rooms.
The five confirmed list sites can yield about 1,715 private residential units, including 480 executive condo (EC) units. This is a 15% reduction from the 1H2019 confirmed list of 2,025 private residential units that include 385 EC units, says Colliers International.
According to MND, this is due to a large supply of about 44,000 private housing units in the pipeline, which comprises around 39,000 unsold units from GLS and en bloc sale sites with planning approval, and an additional 5,000 units from sites that are pending planning approval. In addition, there are around 24,000 existing private housing units that remain vacant.
The government will reduce the supply of private residential units on the confirmed list for the 2H2019 government land sales (GLS) programme (Picture Credit: Samuel Isaac Chua/EdgeProp Singapore)
“The 15% reduction in the confirmed supply of residential units on sites to be released for sale in the second half of 2019 shows that the government is aware of the current slowdown in the residential market,” says Leong Boon Hoe, chief operating officer at List Sotheby’s International Realty (List SIR), Singapore.
Wong Xian Yang, senior manager of research at Cushman & Wakefield (C&W), says that this “slight pull-back” of supply is “not expected to have a material impact on the current market and bodes well for the medium to long term stability of the private residential market”.
Developers are likely to adopt a “wait and see approach” this year, and “concentrate on selling off [their] existing inventory”, Wong adds.
With a “continued fall” in demand for private housing since the introduction of the property market cooling measures in July 2018, the overall transaction volume has declined for the third straight quarter in 1Q2019, while developers’ demand for land has also moderated.
The reserve list comprises four private residential sites (including one EC site), three white sites...