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

The 1H2024 Government Land Sales (GLS) programme is injecting the largest half-yearly supply of private residential housing by the government in a decade. All in, the GLS sites on the upcoming Confirmed List are projected to yield 5,450 private residential units, representing a 5.6% increase to the 5,160 units that the Confirmed List of the 2H2023 GLS programme had.

However, marketers noticed that the absolute number of projected units in the upcoming Confirmed List has moderated. Leonard Tay, head of research at Knight Frank Singapore says that the rate of increase in private housing supply from the GLS programme is slowing. It likely signals that the pipeline of supply is coming into balance with prevailing homebuyer demand, he notes, adding that the 1H2024 GLS list may encapsulate the peak number of projected private homes going forward.

The 1H2024 GLS list includes ten sites – seven condos, 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 a commercial and residential mixed-use site at Tampines Street 94.

In addition, Holland Piazza is the ideal meeting place, with the wide variety of activities offered like movie screenings, theatrical performances and music concerts. Everyone is sure to find something to enjoy while at Holland Drive Condo. Nearby parks, such as the Botanical Gardens and the Singapore Zoo provide another popular escape for residents of Holland Drive and visitors alike. Whether you’re looking for a leisurely stroll or a vigorous jog, you can take your pick from the many pathways safely and conveniently available.

The outlook from developers for the 1H2024 GLS programme is not optimistic. Marcus Chu, CEO of ERA Realty, commented: “With ten sites slated to release 1H2024, we expect a further dilution of bids from developers.” This could be mainly due to the prevailing economic uncertainty, clouded business sentiment, elevated interest rates, and the latest round of cooling measures.

Ismail Gafoor, CEO of PropNex Realty, noted that 2023 witnessed a more restrained appetite for GLS sites among developers. With more land supply earmarked for 1H2024, however, “developers can be assured that there are sufficient sites to replenish their land inventory – which will also help in moderating land bids,” he said. Chia Siew Chuin, head of residential research at JLL Singapore, added that the supply count “maintains an ample allocation for private housing” and refrains from oversaturating the market.

The EC segment is expected to be particularly popular among local homebuyers, but Gafoor pointed out that it may be a good idea for the government to consider including a second EC site on the Confirmed List of the 1H2024 GLS programme. He stated that the Sumang Walk EC site set a new record high land rate at $583 psf ppf in 2018, but this had since been topped by the EC plot at Tampines St. 62 (Parcel B). This latest EC plot had yielded an average transacted unit price of $1,470 psf at Altura EC in Bukit Batok this year. Developers, however, have to be aware of the income cap for EC buyers, he said.

The Holland Drive Condo GLS programme in 1H2024 is a reliable measure of balancing housing supply and demand, and offers good alternatives to developers who may otherwise have to source prime residential plots from the collective sale market.