Government stance on land release remains conservative

The government held back on land releases this year. Their restraint has given way to a lively private collective sales market.

The Skywoods. Picture: The Skywoods

Governmental restraint on land sales prompts developers to go for collective sales

Moving into 2018, the government’s stance on land releases remains conservative. They are likely to take a cautious approach in their measurement of land supply, leaving the private sector to be proactive. They have already issued warnings about the possibility of an oversupply in 2 to 3 years’ time. Hence they are likely to be stringent about the criteria under which plots will be released.

Developers, however, may still be replacing diminishing land banks. Foreign developers looking for a stable market to hedge ancillary funds will continue to seek out the available private land.

GLS programme in H1 of 2018 will yield 8,045 private homes

The land available under the Government Land Sales (GLS) programme will yield 8,045 units in the first half of next year. This is comparable to the 8,125 units in the same time period this year.

According to the Ministry of National Development (MND), there are 6 private residential sites under the confirmed list alone; one of which is zoned for executive condominiums (EC). These 6 sites will not only potentially yield 2,775 homes inclusive of 450 EC units but also 4,450 sq m of commercial space.

The list of land plots includes a parcel in Dairy Farm road, another in Jalan Jurong Kechil and an EC site (the only one) in Canberra Link in Sembawang.