For those of us living in Singapore, land scarcity is always a talking point. That’s because it can determine how much land is worth – impacting everything from industrial property values to private housing costs. The government owns 90% the country’s total land area.
The 1967 Land Acquisition Act propelled the government’s ownership percentage of land – between the years of 1959 and 1984 (a 25-year period), the government acquired over 43,000 acres of land. That translated into around one-third of Singapore’s total land area at the time.
Periodically, the government will release land it owns for specific uses. It does this through what’s called the Government Land Sales (GLS) Programme.
The GLS Programme
The GLS Programme is a periodic land sales event and each GLS Programme is planned and then announced every six months. It’s carried out by Urban Redevelopment Authority (URA).
At its core, the GLS comprises of land sites that have both “Confirmed” and “Reserve” lists. It’s structured this way in order to provide flexibility in the supply of land development.
The Confirmed list consist of land sites are identified and then launched for sale on a pre-determined date. Typically, the land parcels are sold through a tender process. When it comes to the Reserve list, sites aren’t released for tender immediately and are instead made available for application.
A Reserve list site is then only put up for tender when a developer indicates it’s willing to pay a minimum price which is acceptable to the government. There are also exceptions to this, for example the government will consider launching a Reserve list site for tender when there’s sufficient market interest in the land parcel.
How Many Confirmed And Reserved Sites Are There?
There are currently 15 Confirmed list sites, with four of those having already been awarded. Another five are open for tender and an additional five are scheduled to open for tender from November to December 2024. Only one site on the Confirmed list was not awarded.
The sites on the Confirmed list include the likes of River Valley Green (Parcel A), Dairy Farm Walk, Canberra Crescent, Tengah Garden Avenue, and Holland Link.
On the Reserve list side, there are currently nine land sites with only one having been awarded.
How Does GLS Impact Singapore Property Prices?
For those of us interested in property, the GLS Programme certainly impacts property values in Singapore. That’s mainly because developers are the main clients of the GLS Programme. Developers acquire land via two main routes; either through en-bloc sales or the GLS Programme.
Given this, the government has tight control over one of the big avenues for property development in Singapore – whether it be for residential, commercial, or industrial use.
As such, watching closely to see which sites the government awards could indicate where further urban development may take place. Certain neighbourhoods could see more land sites being offered via the GLS Programme and – accompanying that – there could also be a transformation or gentrification of sorts that happens there.
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Multiple Sites And Urban Development
Existing sites in the same area that are offered by the GLS Programme, particularly those near key transportation links and arteries, could result in property prices in the respective areas rising over the short term.
Furthermore, understanding what type of property the site is slated for – residential, commercial development etc. – could indicate to investors or individuals what type of urban mix the government is looking for in specific neighbourhoods.
With multiple residential sites being offered through the GLS Programme within a relatively short period of time, such as the six sites awarded near Lentor MRT from July 2021 to September 2023, that could result in property prices and per square foot averages of condos rising.
Overall, the GLS Programme gives the government in Singapore control over the supply and development in land, two significant factors that go into determining the price of Singapore property.
Cover Image Credit: SLA
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