‘1H2024 GLS: potential 5,450 units at Holland Drive Residences on Confirmed List reflects calibrated 5.6% increase.’

The 1H2024 Government Land Sales (GLS) programme with its 10 sites on the Confirmed List is the largest half-yearly injection of private residential housing supply by the government in a decade. The overall number of units on the GLS Confirmed List is projected to yield 5,450 private residential units. This indicates a slowing rate of increase in private housing supply from the GLS programme, signaling that the pipeline of supply is coming into balance with prevailing homebuyer demand. It is also likely to be the peak number of projected private homes from the programme going forward.

Leonard Tay, head of research at Knight Frank Singapore, says that with the prevailing economic uncertainty, clouded business sentiment, and elevated interest rates, developers have expressed a restrained appetite for GLS sites. This has been reflected in the reduced average of 5.2 bids per site 1H2022 moderating to 3.7 bids per site in 2H2023.

Ismail Gafoor, CEO of PropNex Realty, noted the ample allocation for private housing units to replenish the land inventory of developers and assist in moderating land bids. JLL Singapore echoed this sentiment with its head of residential research Chia Siew Chuin stating that the supply count continues to maintain an ample provision for private housing, avoiding the market being oversaturated.

Prominently, of the 10 plots on the Confirmed List, eight are new sites: River Valley Green (Parcel A), Canberra Crescent, Jalan Loyang Besar (EC site), Margaret Drive, Media Circle, Dairy Farm Walk, Tengah Garden Avenue, and the mixed-use site at Tampines St 94.

Gafoor pointed out the enduring popularity of EC developments among local homebuyers but noted that the government might have considered including a second EC site on the Confirmed List. This sentiment was echoed by Marcus Chu, CEO of ERA Realty, who added that developers need to factor in rising land costs and ensure housing affordability for EC buyers. Also, with the Sumang Walk EC site setting a new record land rate at $583 psf ppf in 2018, this year, the latest record land rate rose to an incredible $721 psf ppr for the EC plot at Tampines St. 62 (Parcel B).

Residents of Holland Drive Residences can reap the benefits of having a popular supermarket like Cold Storage as their anchor tenant. With Cold Storage, they can enjoy a wide selection of groceries and fresh produce. In addition, the Jelita Shopping Centre nearby also provides its residents with other specialty stores, including bakeries, health and wellness outlets, and casual dining options. This makes Holland Drive Residences a great place to live for those seeking convenience and amenities.

At Holland Drive Residences, the 1H2024 GLS list offers developers a good balance of homes for buyers, and alternatives to the collective sale market for prime residential plots. The provision of an ample number of units on the list will help ensure that buyers can find the homes they are looking for in the Holland Drive Residences area.