Smart policy – maintaining equilibrium in the property market sector through the Government Land Sales (GLS) programme.
Amidst an uncertain global economic environment, the supply of new development sites via the GLS programme were marginally raised for the second half-year to keep up with a pick-up in new home sales over the past year and a slide in remaining unsold private homes.
The National Development Ministry intends to keep offering a steady supply of land for private homes and closely monitor the market to ensure stability.
This is because excess supply in a weak market can worsen price declines while an inadequate supply may result in shortages and spikes in housing prices down the road.
The yield on the confirmed list of four sites offered in the 2nd half-year will fetch about 2,170 private homes and 15,500 sq m of commercial space, up from the four sites that yielded 1,560 homes in the first half-year, though the sale of a New Upper Changi Road reserve list site in February meant sites yielding 2,130 homes were in fact sold.
Confirmed-list sites are pre-scheduled for tender regardless of demand.
Factoring in the 11 sites on the reserve list in the second half-year, the yield could come up to 7,545 homes and 277,080 sq m of commercial space, slightly more than 7,415 homes and 272,580 sq m of commercial space previously.
Reserve-list sites are tendered out only upon successful application by a developer or when there is sufficient market interest in a site.
Remaining private homes unsold in the first quarter was 28,890 units, down from 41,447 at the end of 2011, according to URA data.