What is the Government Land Sales (GLS) programme?
It is a process whereby the Singapore Government releases state land sites for developers to bid for in an open tender so they can use it to develop properties for residential and commercial use. Land sites are released through two lists – the Confirmed List and Reserved List.
Sites released under the Confirmed List are sold to the highest bidders while sites under the Reserved List will only be open for tender or sale if an interested developer submits a successful application indicating a minimum price that is accepted by the Government.
How many Confirmed List sites will be available in 1H2021?
A total of four residential sites have been placed on the Confirmed List and will be up for tender in the first half of 2021, with one of the sites being allocated for an executive condominium (EC). These sites will yield approximately 1,605 residential units – an increase from 1,370 units in the previous 2H2020. There are no new sites being released predominantly for commercial or hotel use this time round.
What are some insights from 1H2021 GLS and how will the property market be impacted in the next few years?
Although there is only a moderate increase in sites for 1H2021 due to the Government’s cautious approach towards uncertain market conditions, this does indicate their confidence in improving economic conditions. This increase is a good initial sign to mitigate a future growth in demand. Looking at 2020’s data, we can see that the number of unsold residential units (unsold inventory) has decreased throughout 2020, indicating that the pandemic has not slowed down demand. If the economy bounces back and the sales momentum follows 2019’s trajectory and continues in 1Q2021, the number of unsold inventory at the end of 2021 might drop below 20,000 units.