Five-year low: GLS programme tapers with 23% less residential units in 1H15

Only one EC will be released.

According to the 1st half 2015 Government Land Sales (GLS) Programme, a total of 6 residential sites will be released in the confirmed list (including 1 Executive Condominium (EC) site) and an additional 13 sites will be in the reserve list.

The confirmed list for 1H15, will yield an estimated total of 3,020 residential units, which is 23% lower compared to 2H14 tally of 3,915 residential units. The number of residential units released in 1H15 confirmed list is the lowest since 1H10 when only 2,925 units were released.

According to OrangeTee, the tapering of land sales signals the government awareness of the impending huge supply in the pipeline. This should be positive for property prices and will help mitigate the current decline. Nevertheless, overall prices are still expected to edge lower slowly over the medium term as market sentiments remain muted and current cooling measures remain unchanged.

OrangeTee adds that only one EC site will be released in the confirmed list. The site is located in Choa Chu Kang Avenue 5 and is expected to yield around 490 units. This is a big turnaround compared to the previous GLS programme in 2H14 where 3 EC sites were released.