Main sources of supply – Property in Singapore for rent
The main sources of supply of real estate are: vacant sites for development; change in zoning and/or plot ratio; existing stock; and new buildings. Property in Singapore for rent.
- Vacant sites for development
The release of state land is carried out through the Government Land Sales (GLS) programme. Each programme is planned for and announced every 6 months. The GLS sites are released through two main systems – the reserve list and the confirmed list. Property in Singapore for rent.
URA acts as agent for the State in carrying out land sales mainly for commercial, hotel and private residential developments. Sites are usually sold on 99-year leases for commercial, hotel and private residential developments. Other lease tenures may be offered depending on the specific sites, e.g. some commercial sites may be offered for leases ranging from 15 years to 60 years.
Property developers can also seek en-block sales from existing buildings and landed housing to redevelop into new properties. It may take a few years to build homes from the vacant sites. When completed, it will increase the supply of property.
- Change in zoning and/or plot ratio
URA may decide to change the zoning from a commercial/industrial zone to a residential zone. There may be a revision by URA on the plot ratio or there may be a request for higher plot ratio by the developer which will involve payment of a Development Charge. Plot ratio refers to the amount of floor area over the land area. The change in zoning to residential and/or increase in plot ratio will result in an increase in supply of residential properties. Property in Singapore for rent.
- Existing stock
Sometimes developers may retain some units for rental yield when the market was down at the time of launch. When the market recovers and prices are up to the developers’ expectation, they may then release the unsold units to the market, thereby increasing supply. Property in Singapore for rent.
- New buildings
When new buildings under construction are completed, it will help to boost the supply of property available.
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