Finding the right balance for housing

The Urban Redevelopment Authority (URA) announced the Government Land Sales (GLS) Programme for the second half of 2016 earlier today.

In considering the land quantum for the 2H2016 GLS programme, we have taken into account several factors:

supply-jan-2016

First, the decline in the number of remaining unsold private homes, as well as the corresponding pick-up in new private home sales at a monthly average rate of 600 units over the last 12 months.

Second, the actual supply of private homes committed to in the first half of the year. This worked out to 2,130 homes, higher than the 1,560 homes offered in the GLS programme over the same period, due to the successful sale of a Reserve List site in February 2016.

With these in mind, we have increased the supply of new private homes on the 2H2016 Confirmed List to match the actual committed supply in the first half of the year. So over the next six months, we will sell four sites on the Confirmed List, which are expected to yield around 2,170 private homes.

If we were to include the sites on the Reserve List, we will have a total potential supply in the second half of the year that is similar to what was provided previously in 1H2016.

All this will help to meet the current demand for new housing sites from developers, and add to private housing supply over the medium term.

Besides the overall quantum, we have also taken a closer look at the location of the sale sites.

In particular, we have continued to focus on sites in suburban areas, as these are the preferred locations for most first-timers and upgraders.

In line with this, two of the sites from the latest GLS programme are in areas outside the Central Region – at Fernvale Road in Sengkang and West Coast Vale in Clementi – which can provide approximately 1,150 new homes.

We are also offering a site at Upper Serangoon Road, close to the upcoming HDB estate at Bidadari, for a mixed-use development comprising residences and a commercial complex. This complex will house retail and food outlets, offering many conveniences to the future residents of Bidadari Estate.

The new private homes from these sites should be completed around 2020. They will provide more choices for families looking for suburban private homes.

Over the coming years, MND will continue to provide a steady supply of land for private housing.

We are mindful that excessive supply in a weak market can exacerbate a decline in prices. At the same time, insufficient supply can result in a future shortage and an unwarranted spike in housing prices when demand picks up.

So we will continue to monitor the market closely, and find the right balance to ensure sustainable housing prices and a stable property market.

Source: MND

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Finding the right balance for housing

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