The government’s decision to decrease private residential housing is caused by a steady decline of demand since the 2018 cooling measures. The decision was also influenced by an increased supply of private housing units, as well as private housing units that remain vacant.
The government has moved to lessen the supply of private residential housing from confirmed sites covered by the government land sales (GLS) programme for 2019’s second half, reported The Straits Times.
This is believed to be caused by the steady decline of demand since the property market cooling measures were introduced in July 2018.
It is also seen that the government’s decision was influenced by a large supply of an estimated 44,000 private housing units coming in. There are also an estimated 24,000 private housing units that remain vacant.
In an announcement, the Ministry of National Development released eight reserve list sites and five confirmed list sites that have the capacity of 6,430 private homes, 1,100 hotel rooms, and 92,000 sq m gross floor area (GFA).
The private home supply totalling to 1,715 units under the confirmed list sites is 15 percent or 310 units lower than the 2,025 units, compared to the confirmed list sites for the 2019 GLS programme’s first half.
Meanwhile, the reserve list is composed of four private residential sites (including one EC site), one hotel site, and three White sites. These sites can yield around 4,715 private residential units, 1,100 hotel rooms, with 92,000 sq m GFA of commercial space.
On the other hand, the five confirmed list sites are considered private residential sites, which includes one EC site that can yield around 1,715 private residential units.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com