Your search results

Is Land in Singapore Becoming Too Expensive? Unpacking the Developers’ Reluctance

Posted by Jayson Ang on September 16, 2026

| 0

TLDR

Singapore’s escalating land costs are reshaping developer strategies and the property market. With government land sales commanding record prices and construction expenses rising, developers are increasingly cautious about launching new projects. Many prefer smaller-scale developments or delay launches to avoid overcommitting in uncertain conditions. This reluctance reduces supply, intensifying competition for resale condos and pushing prices higher. Buyers face shrinking unit sizes and higher psf rates, while developers struggle to balance affordability with profitability. The trend signals a structural challenge: land scarcity and rising costs are making housing less accessible, while developers hedge risks by limiting supply. For investors and homeowners, this means fewer opportunities at entry-level pricing and a stronger emphasis on long-term value rather than short-term speculation.

The recent lack of interest in Government Land Sales (GLS) plots, highlighted by the third consecutive failed bid for the Media Circle land plot, signals a significant shift in Singapore’s property market. This disinterest, akin to finding no queue for free ice cream, is surprising given the current high prices of new launch condos. While a surge in supply could potentially moderate prices, the underlying reasons for developers’ reluctance warrant closer examination.

A Disrupted Cycle: The GLS “Winter”

Developers typically operate on a roughly five-year cycle: acquiring land, building and selling properties, and then replenishing their land banks. The last major en bloc rush, where developers acquired existing condominiums for redevelopment, was in 2017. Based on this cycle, a new wave of land acquisition was expected by 2022. While the COVID-19 pandemic and rising interest rates introduced some delays, the current situation in 2024 shows an unexpected level of disinterest. The en bloc market remains stagnant.

What’s more concerning is the lack of interest in GLS plots. These are generally considered the most straightforward way for developers to replenish their land banks, as the process is far less complex than collective sales of existing condos. Historically, failed GLS bids have been rare, with the last instance in 2020 being a special case involving a 30-year lease site. Yet, high-profile sites like Marina Crescent, Jurong Lake, and Media Circle, which are far from undesirable locations, have garnered little to no interest. The exceptionally low bids, such as the rejected bid for Media Circle being 61% lower than a neighboring plot, suggest a deliberate message from developers to the government.

The Stagnant En Bloc Market

Developers are also showing little enthusiasm for acquiring and redeveloping existing resale condominiums. The prevailing economic uncertainty makes large-scale redevelopments risky. Unless it involves small developers and niche land plots, a resurgence in collective sales is unlikely.

On the sellers’ side, the high prices they expect for their properties, driven by the increased cost of replacement homes, further deter developers. Additionally, the 15-month waiting period for HDB owners to buy a resale flat after selling their existing one creates an added barrier for some potential en bloc sellers, contributing to their reluctance.

The Influence of Long-Stay Service Apartments

The government’s push for the inclusion of long-stay service apartments (SA2) in GLS offerings is a significant factor in developers’ current reluctance. This initiative aims to alleviate pressure on the rental market by providing long-term accommodation options that do not compete with short-term stays. However, developers are clearly signaling their disinterest in this model.

In an environment of rising economic uncertainty, developers are disinclined to undertake projects that involve managing service apartments (often through management firms) and effectively acting as landlords. This deviates significantly from their traditional business model of building and selling condominiums. The softening rental market and geopolitical instability further exacerbate these concerns. (In a recession, for example, corporations often cut housing allowances and reduce expatriate hires, directly impacting the service apartment market).

It is becoming increasingly likely that the government will need to offer more attractive incentives, possibly even lower reserve prices for GLS plots that mandate the inclusion of these long-stay units, to encourage developer participation and address the current “GLS winter.”

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Buying Tips Opinion

Pitfalls of Owning a Boutique Condo: 5 Insider Insights You’ll Wish You Knew Earlier

Jayson Ang – May 19, 2024 –

TLDR When considering boutique condos, be mindful of potential drawbacks such as dominating families influencing rules, lack of privacy due...

Buying Tips Mandarin Top 5

5 Things to do When You Go For A Property Viewing In Singapore

Jayson Ang – June 6, 2023 –

5 Things to do When You Go For A Property Viewing In Singapore Here are 5 things to keep in...

Mandarin Top 5

Top 5 Factors To Consider When Choosing Between A Resale Condo And A New Launch In Singapore

Jayson Ang – June 17, 2025 –

TLDR Choosing between a resale condo and a new launch in Singapore depends on your priorities as an investor or...

All Blog Posts Buying Tips

When Is The Best Time To Buy A New Launch?

Jayson Ang – January 13, 2023 –

TLDR When it comes to new property launches, timing is crucial. Early buyers often secure the best prices due to...

All Opinion Selling Tips

Ouch! How Owning a Million-Dollar Home Can Sting with a Whopping $300K Interest in Just a Decade!

Jayson Ang – November 28, 2023 –

TLDR When considering property investments in Singapore, it's crucial to monitor home loan interest rates closely. Even a slight increase...

All Blog Posts Opinion

Singapore Property Bubble Ahead? My Friends Share My Market Predictions

Jayson Ang – March 12, 2023 –

TLDR The author delves into various opinions on the Singapore property market for the year 2023. Experts have differing views...

Mandarin Top 5

5 Factors : The Benefits Of Investing In A Property With Good Access To Green Spaces In Singapore

Jayson Ang – June 30, 2024 –

Real estate investment has always been considered a sound investment decision, as it offers long-term growth potential and a reliable...

Mandarin Top 5

The Psychology of Property Investing: 5 Reasons Why Singaporeans Love Real Estate

Jayson Ang – May 4, 2024 –

Real estate investing has always been a popular way to grow wealth and secure financial stability. In Singapore, the love...

All Blog Posts Buying Tips

What Will Happen When Your 99-Year Housing Lease Expires?

Jayson Ang – February 11, 2023 –

TLDR We delve into the challenges faced by Singaporeans with expiring 99-year housing leases. It explores the types of leases...

All Buying Tips Opinion

Upgrading to a (Potentially Smaller) New Launch Condominium: A Trade-Off Analysis for HDB Owners

Jayson Ang – September 13, 2026 –

TLDR For HDB owners eyeing new launch condos, upgrading often means trading space for modern amenities and potential long-term value....

All Buying Tips Opinion Selling Tips

5 Warning Signs of New Launch Condominiums That Certain Property Agents Might Not Disclose to You

Jayson Ang – November 29, 2025 –

TLDR When buying a new launch condo, don’t just rely on show flats or sales pitches—look deeper. Watch out if...

All Buying Tips Opinion

Challenging the Myth of Lease Decay: Older Leasehold Condos Outperforming Newer Ones

Jayson Ang – February 10, 2026 –

TLDR Older leasehold condos in Singapore, particularly those built in the 1980s and 1990s, have shown annualised price growth exceeding...

All Buying Tips Opinion

Leasehold vs. Freehold Condos in Singapore: A Decade of Data

Jayson Ang – December 14, 2025 –

TLDR In Singapore’s property market (2014-2024), leasehold condos often outperform freehold in short-term holding (around 10 years) due to lower...

Mandarin Top 5

5 Most Affordable Areas to Invest in Property in Singapore

Jayson Ang – June 2, 2024 –

Singapore is known for being one of the most expensive cities in the world, particularly when it comes to property...

All Buying Tips Opinion

4 Key Factors to Consider When Purchasing a Private Property for the First Time

Jayson Ang – August 27, 2023 –

TLDR When considering buying or selling property in Singapore, it's crucial to understand factors like Additional Buyer’s Stamp Duty, Loan-To-Value...

Mandarin Top 5

5 Factors Affecting A Property’s Resale Value

Jayson Ang – September 4, 2024 –

The real estate market is a complex and ever-changing landscape, with various factors influencing the value of a property. When...

Mandarin Top 5

5 Tips : How To Spot A Good Investment Opportunity In Singapore’s Property Market

Jayson Ang – July 18, 2024 –

Singapore's property market offers a plethora of investment opportunities for both local and foreign investors. To spot a good investment...

All Blog Posts Buying Tips Top List

Expert Tips : Top Property Investment Strategies in Singapore

Jayson Ang – December 25, 2022 –

TLDR Singapore offers lucrative property investment opportunities with its stable economy and political climate. To succeed, investors should conduct thorough...