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Singapore Property Kaki

A place for sharing property, investments and financial management ideas among kakis

Why the 1H18 Government Land Sales announcement can be good for the market

This morning, the Ministry of National Development released the Government Land Sales (GLS) Programme for the first half of 2018. There were just 6 confirmed list sites and 9 reserve list sites announced for 1H 2018. These sites could yield about 8,045 new units and 63,960 sqm of commercial space.

GLS CL

GLS RL

Despite the strong demand for development sites by developers, the government decided to keep the total supply of units for 1H2018 at about the same level as the supply of units from the 2H2017 GLS Programme. This is also in contrary to what many analysts had earlier expected.

In SPK’s opinion, there are 2 different possible approaches that the government could have taken in handling the current demand for sites in the property market. One approach is to for the government to be more pro-active and interfere in the market. The government can release more development sites via GLS to developers to meet their demand for land and cool down the collective sales market. Another approach is to be reactive, keep to the existing GLS policy and let the property market and developers to find an equilibrium on their own. Looks like the government has chosen the latter approach to deal with the current collective sales fever.

Could the lack of interference by the government send further positive signals to the property market that it is still not the time for the government to interfere yet?

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  1. Is it time to curb our enthusiasm for Singapore property? – Singapore Property Kaki
  2. Is it time to curb our enthusiasm for Singapore property? - Little Big Red Dot

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