Should the Government Have Boosted Housing Supply in the H1 2026 GLS Programme?
Should the Government Have Boosted Housing Supply in the H1 2026 GLS Programme?
8 December 2025
CONDOsingapore.com
With private home demand remaining robust, low interest rates supporting buyers, and strong sales across new launches, many are questioning whether the government should have offered more housing sites in its confirmed list for the first half of 2026 Government Land Sales (GLS) programme.
Recent launches have seen excellent take-up rates. Projects such as Skye at Holland (99%), Penrith (97%), LyndenWoods at Singapore Science Park (94%), and Springleaf Residence (92%) sold strongly. River Valley projects River Green and Zyon Grand, along with Faber Residence in Clementi, also achieved over 80% sales during their launches.
Huttons Data Analytics projects that total private home sales (excluding ECs) for 2025 will reach around 11,000 units — the highest annual figure since 2021. The three-month compounded Singapore overnight rate has fallen significantly to 1.23% as of 5 December, compared to 3.02% at the start of the year, further fuelling buyer confidence.
Reduced Supply in H1 2026 GLS
Despite this strong demand, the H1 2026 GLS confirmed list will yield an estimated 4,575 new homes — a 3.2% decline from the H2 2025 programme (4,725 units) and 9% lower than H1 2025 (5,030 units). This is also below the 5,450 and 5,050 units offered in H1 and H2 2024 respectively.
While developers can still trigger reserved list sites (estimated to yield another 4,610 homes), these carry greater market risk for developers.
Given the current market momentum, many observers believe the confirmed list supply could — and perhaps should — have been raised to above 5,000 units.
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Why More Supply Could Have Been Beneficial
1. Moderating Price Growth
Increasing housing supply would help cool the pace of private home price increases. The URA residential property price index rose 5.1% year-on-year in Q3 2025, with non-landed homes up 5.6%. Over the past five years (Q3 2020 to Q3 2025), prices have climbed 39.9%, equivalent to a compound annual growth rate of about 6.9%.
For context, a new suburban condo unit priced at S$1.9 million (S$2,100 psf for 900 sq ft) represents roughly 7.4 times the annual income of the 80th percentile household (S$257,856 in 2024). With economic uncertainties ahead, a more measured supply increase would help keep private housing accessible, especially as many Singaporeans aspire to condo living.
2. Meeting Developer Demand
Developers have shown strong appetite for sites. Recent tenders saw competitive bidding — a Newton MRT site attracted eight bids with a top offer of nearly S$1,820 psf ppr, while a Bedok Rise site drew 10 bids at around S$1,330 psf ppr.
A larger confirmed list would provide developers with a more predictable project pipeline, supporting business stability in a fragmented market. At the same time, higher supply could help moderate aggressive land bidding, reducing the risk of overpaying for sites and potential financial stress if market conditions shift.
3. Positive Economic Impact
Selling more sites would generate broader economic activity through construction jobs, professional services (architects, engineers), property financing, and agent commissions. While resources are stretched by major infrastructure projects like Changi Terminal 5 and the integrated resorts expansion, boosting domestic housing activity could provide a timely lift amid global economic headwinds.
Final Thoughts
The government’s strong fiscal position and commitment to past reserves are important considerations. However, by offering a relatively modest confirmed list for H1 2026, an opportunity may have been missed to better balance the housing market.
A larger supply of new homes from confirmed GLS sites could have contributed to more stable prices, sustainable development, and stronger economic momentum — while still maintaining prudent market management.
