Land supply for private residential use for H1 2020 has risen by an estimated 17% from H2 2020, in which we saw a 5-year low of only 1,370 units supplied. A total of 1,605 units have been added to the private home supply from 4 sites newly released on the confirmed list, including one Executive Condominium (EC) site that will yield around 599 units. The 2.37ha EC site at Tampines Street 62 is set to be released for sale in April 2021 together with a 1.72ha site for private development at Lentor Central - both sites have been brought over from the reserved list of the Government Land Sales (GLS) programme in 2020. Additionally, 2 new sites at Slim Barracks Rise at One North are to be launched in June 2021. The 2 sites are to yield an expected 405 units in total.
The new sites will likely draw a healthy number of bidders given the strong showing from developers in previous GLS sales. Most notably, the Tanah Merah Kechil Link site drew 15 bidders in October, reflecting developers’ eagerness to shore up their inventories as supply has been limited despite the strong underlying demand in the property market.
Amidst the global economic downturn, developers have sold approximately 7,379 units in the first nine months of 2020, only 1.2% lower than the same period in 2019, and the number of total unsold, uncompleted units has been on a downward trend since Q1 2019, reflecting a healthy demand. Though land supply for residential use for H1 2021 has risen relative to the previous period, supply remains moderate and the possibility that an en bloc cycle be triggered remains likely.
Developers may also turn to sites on the reserve list wherein five residential sites, including one EC site, three white sites and one hotel site have been indexed.
Photo credit: URA