Singapore Reduces Private Housing Land Supply Amid Economic Challenges

SINGAPORE – The Ministry of National Development has announced a significant reduction in the supply of private residential land under the confirmed list for the second half of 2025, decreasing from 5,030 to 4,725 units, marking a 6.1% drop. This decision, made public on June 13, 2025, comes as the nation grapples with economic uncertainties and a volatile job market.

The Government Land Sales (GLS) programme continues to play a crucial role in shaping Singapore’s housing landscape. The latest announcement includes 22 sites, with 10 on the confirmed list and 12 on the reserve list, expected to yield approximately 9,200 private residential units. This is an increase from the 8,505 units projected in the first half of the year, highlighting the ongoing development efforts despite the supply reduction.

According to Mr. Nicholas Mak, Chief Research Officer at Mogul.sg, the cutback in the confirmed list could be attributed to growing economic headwinds. He noted, “The reduction reflects a cautious approach by the government amidst a fluctuating economic climate.” This sentiment is echoed by Lee Sze Teck, Senior Director of Data Analytics at Huttons Asia, who remarked that while the numbers are lower than previous years, they remain significantly higher than the land supply from 2015 to 2023.

The government’s decision appears to be a strategic maneuver to temper the competitive land bidding environment. Marcus Chu, Chief Executive of ERA Singapore, stated, “The continued release of private housing supply aims to moderate recent bullish land bids in selected locations that have seen overwhelming interest.” The inclusion of sites in prime and suburban areas, such as Dover Road and Dunearn Road, aims to alleviate competition and stabilize bidding prices, which have seen an upward trend due to high demand.

The reserve list, which can only be activated upon successful application by developers or when market interest warrants, has seen an increase in supply as well. Notably, the reserve list now includes two new sites at Cross Street and Telok Ayer Street, though no new commercial sites were announced for the downtown core. Leonard Tay, Head of Research at Knight Frank Singapore, emphasized that these sites are strategically located to attract developers given the residential demand in those areas.

The confirmed list sites encompass a variety of locations such as Dairy Farm Walk, Bukit Timah Road, and Kallang Avenue. The Bedok Rise plot, specifically, has drawn attention as it is the last available site near the Tanah Merah MRT station, following the sale of the Tanah Merah Kechil Link site in late 2020. PropNex CEO Ismail Gafoor noted that this could potentially increase competition and stabilize prices for nearby developments.

The implications of these changes are multifaceted. Economically, the reduction in confirmed land supply may hinder the pace of new housing developments, which could exacerbate the existing housing shortage in certain regions. Socially, the availability of affordable housing remains a pressing concern, particularly for first-time buyers and those in need of rental accommodation. Politically, the government’s actions reflect a balancing act between fostering growth in the real estate sector while managing risks associated with market fluctuations.

In conclusion, while the reduction in private housing land supply may impose certain constraints on future development, the strategic adjustments in the GLS programme aim to moderate bidding fervor and ensure a stable housing market. As Singapore navigates these economic challenges, the effectiveness of these measures will be closely monitored by industry stakeholders and potential homebuyers alike.