SINGAPORE: The Government has cut the amount of land it plans to sell in the first half of next year, the Ministry of National Development (MND) said, as property prices remain subdued.
Its revised programme will comprise four sites on the confirmed list, which will be launched for sale on set dates, and 12 sites on the reserve list, which will be put up for tender when a developer has offered an acceptable price.
Together, the sites can accommodate up to 7,420 homes and 272,600 square metres of commercial space, MND said in a news release on Thursday (Dec 17).
The announced sales programme is down from the second half of 2015, in which a land area that could support a potential 7,825 homes and 277,580 sqm of commercial space was offered.
The confirmed sites includes three private residential sites in Jalan Kandis in Sembawang, Martin Place at River Valley and Anchorvale Lane in Sengkang. A commercial and residential site at Bukit Batok West Avenue 6 is also on the confirmed list. Together, they can yield about 1,560 private residential units.
Under the reserve list, eight private residential sites, one commercial and residential site, two commercial sites and one White site are up for sale. The sites are expected to add about 5,860 private residential units and 261,600 sqm of commercial space, mainly for office use.
The supply of private housing and commercial space from the GLS programme will be adequate for meeting the demand over the next few years, said the ministry.
In response to MND's announcement, Colliers International said sentiments in the private residential market is expected to remain subdued, especially after the Federal Reserve's rate hike announcement and as long as the cooling measures and loan curbs remain in place.
"This is despite the fact that some developers are ready to adopt a more competitive pricing strategy to move sales," Colliers International said.
"On a 12-month view, we think that the higher interest rate environment and an over-supply of residential homes could prompt the Government to rethink their stance on policy relaxation, particularly if the market sees further price correction," the real estate company added.