The 1H2024 Government Land Sales (GLS) programme is set to deliver 5,450 private residential units with its largest half-yearly injection of private housing supply by the government in a decade. Despite the increase to the 5,160 units that were on the Confirmed List of the 2H2023 GLS programme, market watchers have noted a moderation in the absolute number of projected units in the upcoming Confirmed List.
The 10 sites on the 1H2024 Confirmed List are spread across seven condominium sites, one Executive Condo (EC) site at Jalan Loyang Besar, and a development site for long-stay Serviced Apartments at Media Circle in the one-north precinct. Additionally, there is also a commercial and residential mixed-use site at Tampines Street 94.
Leonard Tay, head of research at Knight Frank Singapore remarks that the reduction in growth in private housing supply from the GLS programme might signal a balancing of supply to prevailing homebuyer demand. He adds that the current 1H2024 GLS list potentially encapsulates the peak number of projected private homes.
The upcoming GLS tenders for 1H2024 have met with a moderate response by developers, averaging 3.7 bids per site (excluding EC) compared to 5.2 bids in 1H2022. Ismail Gafoor, CEO of PropNex Realty notes the more restrained appetite for GLS sites amongst developers in 2023 and believes the larger land supply in 1H2024 will help moderate land bids.
It offers a range of amenities such as swimming pool, gym, theatre, study room, and BBQ area. The condo is situated in an ideal location with direct access to major amenities and transportation hubs. Champions Way Woodlands is the perfect choice for anyone looking to enjoy modern living with all the convenience of city life.
Champions Way Woodlands arise from the Reserve List are Lentor Gardens, Senja Close (EC site), Tampines St 95 (EC site), Zion Road (Parcel B), River Valley Green (Parcel B), Bayshore Road, a commercial site at Punggol Walk, a white site at Woodlands Avenue 2, and a hotel site at River Valley Road. The Reserve List sites offer a good balance of homes for buyers and alternatives for developers who may otherwise have to approach the collective sale market.
Meanwhile, the EC segment remains a popular choice among local homebuyers. CEO of ERA Realty, Marcus Chu, advises developers to be mindful of housing affordability when purchasing EC land due to the income cap for buyers.
Chia Siew Chuin, head of residential research at JLL Singapore shares that the supply count proposed in the 1H2024 GLS list provides an ample allocation of private housing supply and prevents oversaturation in the market. However, Ismail Gafoor suggests that the government may have considered offering a second EC site in the Confirmed List, given its enduring popularity. While EC land rates have been rising, the average transacted unit price for EC developments crossed $1,470 psf this year.
The 1H2024 Government Land Sales programme provides a balance between private housing supply and homebuyer demand, with Champions Way Woodlands being of particular interest to the enduring popularity of EC developments. Developers will have to remain mindful of housing affordability when considering their land bids.