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Singapore to cut land supply for private housing as demand slows

Singapore city skyline with clear sky and clouds
The 13 land sites to be released can yield a total of 6,430 private homes, slightly fewer than the 6,475 units under the 1H GLS programme. (PHOTO: Getty Commercial)

SINGAPORE — The Singapore government will be reducing the supply of private residential units later this year amid falling demand since cooling measures were introduced.

The government plans to release five confirmed list sites and eight reserve list sites under the 2019 Government Land Sales (GLS) Programme in the second half of this year, according to a statement by the Ministry of National Development (MND) on Thursday (6 June).

The 13 land sites can yield a total of 6,430 private homes, slightly fewer than the 6,475 units under the 1H GLS programme.

The five confirmed sites are private residential sites, including one executive condominium site, which can yield about 1,715 private residential units, including 480 EC units. This is about 15.3 per cent fewer than the 2,025 private residential units (including 385 EC units) in the confirmed list under the 1H programme announced in December.

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The reserve list comprises four private residential sites (including one EC site), three white sites and one hotel site. These sites can yield about 4,715 private residential units, including 595 EC units and an estimated 1,000 units from the first phase of the Kampong Bugis site; 92,000 sq m gross floor area of commercial space; and 1,100 hotel rooms.

24,000 vacant private homes

The ministry said there are around 44,000 private housing units in the pipeline. This comprises around 39,000 unsold units from GLS and en-bloc sale sites with planning approval, and an additional 5,000 units from sites that are pending planning approval.

Another 24,000 existing private housing units remain vacant.

The decline in demand follows the introduction of property market cooling measures in July last year. Overall transaction volume fell for the third straight quarter in the first quarter of this year, while developers’ demand for land also moderated.

“Together with the supply in the pipeline, the supply for the 2H 2019 GLS Programme will sufficiently cater to the housing needs of our population,” the ministry said.

The government said it will continue to monitor the property market closely and adjust the supply from future GLS programmes as necessary.

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Singapore cuts private housing supply under H1 2019 land sales programme

Singapore moves to cool down resurgent property market

Singapore to see sharpest GDP slowdown in Southeast Asia this year: report