25 Jun 2024
GLS Commentary 2H2024 GLS Programme
Property Insight

Moderation in GLS Supply

The second half of 2024 sees a moderation in the Government Land Sales (GLS) programme after seven consecutive increases since 1H2021. The number of residential units on the confirmed list has been adjusted from 5,450 units in the first half of 2024 to 5,050 units in the second half, marking a 7.3% reduction. This adjustment reflects a strategic response to current market conditions, aiming to balance supply with demand amidst three consecutive quarters of increasing uncompleted unsold private residential units, which grew from 16,929 units in Q4 2023 to 19,936 units in Q1 2024.

Strategic Adjustments

The authorities' decision to moderate the GLS supply is influenced by recent property market cooling measures and a cautious sentiment among developers. This measured approach ensures that the supply of private residential units aligns with the housing requirements of the population without oversaturating the market. Additionally, the reserve list supply has been reduced by 10.7%, from 3,460 units in 1H2024 to 3,090 units in 2H2024. The combined supply from both the confirmed and reserve lists totals 8,140 units, an 8.6% decrease.

Notable Confirmed GLS Sites

Key GLS sites on the confirmed list include:

Chencharu Close: Set in Yishun, this site will contribute to the development of 10,000 new homes by 2040, with at least 80% for public housing. It is expected to be a mixed-use integrated development, enhancing connectivity and providing a comprehensive living environment.

Media Circle (Parcels A and B): Located within the One-north precinct, known for its focus on knowledge-intensive sectors, these sites aim to support the local workforce by providing housing options close to workplaces. This aligns with the area’s role in fostering innovation and economic growth.

Bayshore Road: With the opening of the Bayshore MRT station, this site has transitioned from the reserve list to the confirmed list. It is part of a broader transformation of the Bayshore area, including new Build-To-Order (BTO) flats and enhanced amenities, making it a highly attractive location.

Reserve List Sites

A significant site on the reserve list is an Executive Condominium (EC) at Woodlands Drive 17. This marks the first EC site in Woodlands since the Northwave project in 2016, highlighting a key development for the area.

Market Outlook

The strategic moderation of the GLS supply aligns with current market dynamics, ensuring a balanced supply that meets demand. The real estate market in Singapore is closely tied to various factors, including economic conditions, market fluctuations, and regulatory changes. The authorities' measured approach aims to provide a stable and sustainable housing market, supporting economic stability and growth.

Overall, the 2H2024 GLS Programme reflects a cautious yet strategic response to evolving market conditions, ensuring that the supply of residential units aligns with demand while supporting the ongoing development of key areas in Singapore. This approach underscores the importance of adapting to market trends and maintaining a balanced real estate market.

 Click here for the full report 

Prepared By: 

Mohan Sandrasegeran 

Head of Research & Data Analytics  

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The luxury property segment in the CCR saw several notable transactions in 2024. The highest new sale was at Skywaters Residences, where a unit spanning 7,761 sqft sold for $47.3 million at $6,100 psf. In the resale market, two adjacent units at The Ritz-Carlton Residences Singapore, Cairnhill, were each sold for $16.5 million at $5,397 psf, demonstrating continued interest in branded luxury residences. Sub-sale highlights included a transaction at The Avenir, where a unit sold for $8.9 million at $3,686 psf.

Foreign and PR buyers continued to play a significant role in the CCR market. U.S. buyers led the foreign segment with 70 units sold, supported by ABSD exemptions under the Singapore-USA Free Trade Agreement. Chinese PRs dominated the PR segment, accounting for 138 units sold, reflecting sustained interest despite higher ABSD rates for foreign buyers.

Looking ahead to 2025, the CCR is poised for further growth, with anticipated new launches such as Marina View Residences and Aurea expected to rekindle buyer interest. Marina View Residences, offering 683 units in District 1, is set to attract professionals and investors with its strategic location and exceptional accessibility. Aurea, with its heritage-inspired design and prime District 7 location, is positioned to appeal to buyers seeking contemporary urban living. The CCR remains Singapore’s premier residential region, characterized by its luxury offerings, strategic locations, and strong capital appreciation potential.

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 Prepared By: 

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Email:

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Emerald of Katong Leads Historic November 2024 Property Sales

In November 2024, Singapore's developer sales surged to a historic high, achieving 2,557 new home transactions (excluding Executive Condominiums, or ECs) and totaling 2,891 units with ECs included. This represented a significant 246.5% increase compared to October's 738 units. Notably, November marked the first time in over a decade that new home sales exceeded 2,000 units in a single month, a record last seen in March 2013. This exceptional performance was fueled by strategic launches and improved market sentiment driven by easing interest rates.

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The stellar results demonstrated the enduring demand for large-scale, well-positioned projects offering comprehensive amenities. Developers successfully capitalized on a favorable environment, including strong buyer interest ahead of the school holidays and improved borrowing conditions.

Looking ahead, December is expected to experience a seasonal dip due to year-end festivities. However, momentum is projected to rebound in early 2025, driven by key launches such as The Orie in Lorong 1 Toa Payoh. Anticipation for developments like Marina View Residences and Parktown Residence further underscores confidence in Singapore’s property market, which remains resilient amid evolving conditions.

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Price trends reveal a stabilization in the landed property price index, which grew by 1.0% over the first nine months of 2024 compared to 3.2% in the same period in 2023. Median unit prices have also displayed steady growth across all segments. Notably, prices for Good Class Bungalows (GCBs) remained buoyant, with high-value transactions exceeding $20 million. The GCB market recorded 21 caveated transactions, up from 18 in 2023, emphasizing the segment's appeal among ultra-high-net-worth individuals (UHNWIs). District 10 remained a cornerstone for GCBs, supported by Singapore’s political stability and economic strength.

District 19 emerged as the most sought-after area for landed homes, recording 309 transactions due to its mix of established enclaves and proximity to amenities. Other popular districts include Districts 15 and 28, which offer coastal lifestyles and suburban tranquility. The diversity of demand highlights the appeal of landed housing across various buyer segments.

Private homeowners played a pivotal role in 2024, with transactions by this group rising 23.1% year-on-year, driven by capital appreciation in non-landed properties and the aspiration to upgrade. The landed segment's strong fundamentals and exclusivity make it a preferred choice for wealth preservation.

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The landed market’s resilience is further reinforced by off-market transactions in the GCB segment, which cater to buyers’ preference for privacy. Despite challenges like inflationary pressures and high interest rates, the market's appeal as a secure asset class is undiminished.

In summary, the landed property market is poised for continued growth in 2025. Limited supply, strong fundamentals, and consistent demand from affluent buyers position the segment as a cornerstone of Singapore’s real estate landscape. The landed property market’s ability to attract well-capitalized buyers highlights its status as a resilient and prestigious segment, ensuring it remains a key component of Singapore’s property market in the years ahead.

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