Land supply for private housing continues to fall in first half of 2026
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Analysts say that while demand remains steady, developers are expected to be selective in their bidding.
ST PHOTO: JOYCE FANG
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SINGAPORE – Land set aside for private housing on the confirmed list of the Government Land Sales (GLS) programme will shrink further in the first half of 2026, while supply on the reserve list will increase.
The confirmed list, which comprises eight private residential sites and one commercial and residential site, can yield 4,575 private residential units – including 635 executive condominium (EC) units – down from 4,725 units in the second half of 2025. It will also offer 22,500 sq m of gross floor area for commercial space.
The reduction marks the second consecutive half-year that the Government is scaling back on land supply for private residential housing, with analysts saying that while demand remains steady, developers are expected to be selective in their bidding due to economic uncertainty and risks posed by large sites.
Meanwhile, the potential number of private homes on the reserve list will rise to 4,610 units, up from 4,475 units in the last six months of 2025,
The reserve list includes six private residential sites, one commercial site, three white sites – which allow for a mix of uses – and two hotel sites. There are also 186,650 sq m of gross floor area for commercial space, and 970 hotel rooms.
Sites on the reserve list are launched for tender only when a developer submits a minimum acceptable bid or when there is enough market interest.
Knight Frank Singapore head of research Leonard Tay noted that since the first half of 2025, the Government has been trimming the confirmed list while expanding the reserve list.
He said the approach signals that developers are expected to draw on the reserve list if they believe demand cannot be met by the sites earmarked for release.
However, he added that developers have generally stayed away from the reserve list, with only two non-industrial reserve list sites – Marina View and Zion Road (Parcel B) – triggered for tender since 2020.
Despite the smaller confirmed list, the overall private housing pipeline in the GLS programme for January to June 2026 will remain high at around 9,200 units, similar to that in the preceding six months, said MND.
The ministry noted that private housing take-up has remained high in the first 10 months of 2025.
“The Government will continue to closely monitor economic and property market conditions, calibrating the release of GLS supply to ensure a stable and sustainable housing market,” it said.
PropNex chief executive Kelvin Fong said: “Private home prices rose by a moderate 2.7 per cent in the first nine months of 2025. This follows three consecutive years of slowing growth from 2022 to 2024, after the strong 10.6 per cent increase recorded in 2021. At the same time, new home sales have strengthened significantly.”
He added that developers sold an estimated 10,564 new private homes, excluding ECs, from January to Nov 23, 2025 – the first time in four years that annual new home sales have crossed the 10,000-unit mark. With sales picking up and interest rates easing, Mr Fong said maintaining a steady housing supply in the first half of 2026 is prudent.
Mr Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia, said the potential new launches from the first half of 2026 GLS would come onstream only in 2027 or 2028, and would therefore not have an immediate impact on prices.
He added that strong new launch performance, higher land prices, rising resale HDB prices and low unemployment rates will continue to underpin demand.
ERA Singapore chief executive Marcus Chu highlighted several sites that are likely to draw keen interest, such as the Peck Hay Road plot that sits within Newton’s upcoming urban transformation area, and the New Upper Changi Road site near the Bedok transport hub.
He added that the Bayshore Drive mixed-use plot, the largest site in the upcoming GLS programme, will also be closely watched for its strong connectivity and precinct transformation.
The previous Bayshore Road GLS site drew eight bidders and fetched a land price of $658.8 million, or $1,388 per square foot per plot ratio.
With the latest tranche of sites, the total stock of private homes including ECs will rise to about 58,600 units, up from 54,100 units. This comprises about 40,900 units with planning approval and about 17,700 units from GLS sites and awarded en bloc sites that have yet to receive planning approval.
MND said the supply will be from a good spread of sites across various locations, supporting the development of both conventional private residential units and long-stay serviced apartments to cater to both owner-occupation and rental housing demand.
The MND statement noted that the Government has also decided to proceed with the development of the Jurong Lake District precinct by selling the Jurong Lake District master developer site as separate parcels. This will start with the release of a white site in Town Hall Link under the reserve list for January to June 2026.
In addition to the commercial space from the Town Hall Link site, more commercial space supply will be made available through sites carried over from the second half of 2025 reserve list.
Two parcels – a white site in Woodlands Avenue 2 and a short-term lease commercial site in Punggol Walk – will give developers opportunities to initiate the development of more office and retail spaces if there is sufficient market demand, said MND.
The reserve list will also include two sites in River Valley Road and Telok Ayer Street. Both will be carried over from the second half of 2025 reserve list. These sites can be released to increase the supply of hotel rooms based on market demand.
