The Ministry of National Development (MND) stated that the supply of residential housing that belonged to the government land sales (GLS) program for the last 6 months of 2020 has been curbed because of the fallout from the global COVID-19 pandemic.
A total of 1,370 units of private home supply from the three confirmed units is around 23% lesser (405 units) than the 1,775 units that were allotted from such sites during the first half of this year.
If statistics are to be believed, this is the lowest number that has been ever recorded since the second half of the global financial crisis of 2009 when no confirmed lists for the sites were released. The current confirmed list comprises of an executive condominium site that alone is capable of yielding 615 units.
Along with 8 reserve lists which are expected to house residential units whose sum is 5,300, the cumulative sum of the anticipated supply of private housing due in the second half of 2020 boils down to 6,670 units. This number is a little more than the 6,490 units that were designated under the GLS program from January to June of this year.
A hotel site at River Valley Road that could produce near about 530 hotel rooms was transferred from the preceding six-months GLS programme thereby, rendering the final reserve list. MND added that, for the time being, it hasn’t introduced any new site that could be used for hotel or commercial purposes owing to the financial uncertainty and economic turbulence because of the global pandemic.
As far as the residential supply is concerned, MND stated that it was compelled to calculate the points of reduction diligently to evade probable drawbacks in supply across the longer-term. This is why MND maintains an attractive array of sites coupled with the increased supply along the reserve list for the developers to pay heed to development if there happens to be any demand.
Furthermore, the authorities affirmed that it has ensued a balanced supply in the list that was confirmed because the unsold catalog of units for private housing decreased by 20% from January to June in 2019 to that of 2020. Ms. Li confirmed that this relaxation of the precautions is parallel with the current market scenarios where a sudden shock of demand on the residential market along with innumerable unsold inventory caused by the dulled employment prospects and investment sentiment is anticipated.
Nevertheless, MND said that they would be launching the list that has been confirmed only during the last three months of this year. Every homeowner will be allowed a tender period of six months when they can analyze their decisions in light of the current COVID-19 crisis.
The confirmed sites list that was released in the former six months of the year was already given ample time. But, the tenders for the list of the three sites that were launched by end-June will start progressively closing from October 2020 to March 2021.
Collectively, there are three white sites, four residential sites, and the River Valley Road hotel site that were transferred from the reserve list dated from January to June 2020.
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