Locations like the Upper Thomson Road parcels offer an enticing option for those looking to escape the city’s hustle and bustle while enjoying good accessibility. These suburban sites are typically larger, with each site listed in the 2H2023 GLS programme offering more than 500 units.
With larger sites in the GLS programme, buyers have more options in the market. The larger sites also mean that the rental market is likely to moderate in the medium term when the units are completed, as a portion of these private residential units are likely to be leased out.
The upcoming executive condominium (EC) sites will be music to the ears of property upgraders and first-time homebuyers who are not eligible to purchase Build-to-Order homes due to income ceiling restrictions.
Considering that ECs are often more affordably priced than private condominiums and eligible buyers have access to Central Provident Fund housing grants, we expect to see steady and resilient demand for these properties.
MORE CHOICES FOR BUYERS BUT MORE CONSIDERATIONS FOR DEVELOPERS
Given that half of the GLS Confirmed List supply is in the OCR, this should cater to the upgrader demand for the HDB flat lessees which will reach their minimum occupation period in the next 24 to 36 months.
That said, the announcement of the new GLS programme sites may not have an immediate impact on home prices because the new sites would take a while to be launched in the market. Property seekers are unlikely to see owners and developers lowering prices.
Developers will need to consider a variety of factors when deciding how much to bid for land. While previous bids can give some indication, the rapidly changing market landscape means developers need to reassess their future pricing predictions and corresponding risks. This can make land acquisition a big, bold bet.
Dr Tan Tee Khoon is Country Manager of Singapore at PropertyGuru, and Dr Lee Nai Jia is Head of Real Estate Intelligence, Data and Software Solutions at PropertyGuru Group.