Kuala Lumpur – The second half of 2023 will witness a significant surge in Singapore’s land supply for private homes, resulting in the highest total confirmed supply in a decade, according to recent reports. This increase in supply, occurring amidst strong demand for private housing and a supply shortage, reflects Singapore’s commitment to addressing the market imbalance, as stated by a property expert.
While the additional supply is a positive development, it is important to note that these new units will only enter the market in 2025 and beyond, the expert highlighted in an interview with NST Property. Nonetheless, this announcement is encouraging news for Malaysian real estate investors, particularly companies like Sunway Property, which have a substantial presence in Singapore.
The property expert expressed uncertainty regarding the eligibility of Malaysian property developers to bid for the land or form joint ventures with local entities in Singapore. However, Sunway Property had already declared earlier this year its intention to expand its footprint in the city-state.
Sarena Cheah, the Managing Director of Sunway Property, expressed optimism about the property market this year due to Singapore’s strong economic outlook. The company plans to introduce a new line of distinctive home products in Singapore, Malaysia, and China, with a focus on sustainability, innovation, health and wellness, lifestyle, and new experiences.
The Government Land Sales (GLS) confirmed list currently comprises eight sites that will yield approximately 5,160 private residential units, including 560 executive condominium (EC) units, along with 4,900 square meters of commercial space. Notably, four of the confirmed sites are located on Orchard Boulevard, two parcels are on Upper Thomson Road, and one is on Zion Road (Parcel A).
This recent ramp-up in supply represents a 26 percent increase compared to the 4,090 residential units in the first half of 2023. If all goes as planned, the total confirmed supply for 2023 is expected to reach approximately 9,250 units, surpassing the level of supply declared in 2013, which stood at 12,913 units.
Moreover, the projected supply for 2023 is nearly 50 percent higher than that of 2022 and more than 200 times greater than the supply recorded in 2021, signaling a substantial boost in housing availability.
As Singapore takes proactive steps to address the demand-supply gap, the increased land supply for private homes will provide opportunities for both local and international investors, shaping the city-state’s real estate landscape in the coming years.