Land supply eased to ease fears
FEARS among developers that an oversupply of private housing is building up appears to have prompted the Government to sharply reduce its supply of land.
The amount of development sites it will make available for sale in the first half of next year will be able to yield only about 11,600 homes - the first time the number has fallen below 14,000 since the second half of 2010.
The supply slowdown suggests the Government is "taking a more cautionary stance" towards the property market, said Jones Lang LaSalle research head Chua Yang Liang.
Colliers International research head Chia Siew Chuin added that the Government will probably continue reducing supply.
The announcement from the Ministry of National Development (MND) yesterday comes after the Real Estate Developers' Association of Singapore (Redas) warned last month that state land sales needed tweaking, given the bumper crop of new private homes looming.
A Redas spokesman said yesterday that it supported the Government's "calibrated approach...to ensure a sustainable and stable real-estate market".
About 65,000 new private homes are expected to be completed over the next three years.
The MND said yesterday that next year's supply, coupled with ongoing projects, "is expected to be adequate to meet the demand for private housing and commercial space over the next few years".
The Government land sales for the first half of next year consist of eight confirmed sites and 15 on the reserve list.
Confirmed-list plots go on sale at a pre-determined date, regardless of demand, whereas reserve-list land hits the market only when developers lodge minimum acceptable bids.
The eight confirmed sites can yield 4,630 private homes, including 2,200 Executive Condominium (EC) units, and 5,000 sq m of commercial space.
They include a parcel at Prince Charles Crescent in Redhill next to the Wing Tai project The Crest that was first put on the reserve list in May this year.
Most of the residential sites on the confirmed list are on the outskirts of town, in places such as Yishun, Sembawang, Choa Chu Kang and Sengkang.
Selling more suburban plots could help calm the mass-market private-home sector, said Chesterton Singapore managing director Donald Han, who noted that prices for these units have outpaced the overall market this year.
The confirmed list includes a mixed-use site at the junction of Upper Serangoon and Meyappa Chettiar roads zoned for residential and commercial use.
There are 13 private residential sites on the reserve list, including one EC plot, and a commercial parcel in Sims Avenue and a white site at Marina View.
These can yield about 7,000 private homes in all, including 600 EC units, and 188,000 sq m of commercial space.
The commercial plot and the white site will let the market develop more commercial space if there is demand.