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 …

Mandarin Top 5

The Importance of Due Diligence in Property Investing in Singapore

Jayson Ang – April 22, 2024 –

Investing in property can be a lucrative venture, but it also comes with its own set of risks and challenges....

All Blog Posts Buying Tips

Step-By-Step Guide To Buy Resale HDB (Updated March 2023)

Jayson Ang – July 13, 2023 –

TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...

Mandarin Top 5

5 Reasons : Why Singapore’s Rental Market Is Still Lucrative For Property Investors

Jayson Ang – June 8, 2024 –

Singapore's property market has always been an attractive investment option due to its stability and potential for high returns. While...

All Buying Tips Reports Selling Tips

A Timeline of Property Cooling Measures in Singapore Through the Years

Jayson Ang – August 6, 2025 –

TLDR Since 2009, Singapore has implemented over 15 rounds of property cooling measures to curb speculation and keep homes affordable....

Mandarin Top 5

Top 5 Reasons : How Investing in a Luxury Condominium in Singapore Can Boost Your Portfolio

Jayson Ang – January 16, 2025 –

Investing in a luxury condominium in Singapore is an attractive option for investors looking to diversify their portfolio and enjoy...

All Blog Posts Buying Tips

Exploring the Resale Condo Market? Here’s What to Watch Out For!

Jayson Ang – March 22, 2023 –

TLDR The impact of COVID-19 on Singapore's real estate market has been significant, leading to a surge in demand for...

All Opinion

The Cost of Housing – Affordability vs Premium?

Jayson Ang – August 11, 2023 –

TLDR The blog post discusses the challenges Singapore faces in housing affordability, particularly the rising costs of private homes compared...

All Blog Posts

HDB Market Outlook 2023

Jayson Ang – January 8, 2023 –

TLDR: Understanding the HDB Market Outlook 2023 The HDB resale market showed resilience in 2022, with significant growth in sales...

All Buying Tips

Simplified Guide to Buying Landed Property in Singapore

Jayson Ang – January 8, 2024 –

TLDR When considering buying a landed property in Singapore, you have options like terrace homes, semi-detached houses, and bungalows. Understanding...

All Blog Posts Buying Tips

Unveiling the Secrets: How Foreigners Can Buy Property in Singapore – 6 Essential Steps to Follow

Jayson Ang – December 19, 2024 –

TLDR Foreign investors find Singapore attractive due to its stable governance and transparent business practices. Foreigners, including Permanent Residents (PRs),...

All Blog Posts Buying Tips

Learn How To Negotiate For The Best Price When Purchasing a Resale HDB Flat

Jayson Ang – February 17, 2023 –

Navigating the complexities of purchasing a resale HDB flat requires honing negotiation skills and market awareness. Understanding property valuations, seller...

All Buying Tips Opinion

Should You Pay Extra for a Private Condo When the EC Next Door Looks Identical?

Jayson Ang – April 16, 2026 –

TLDR Singapore’s executive condominiums (ECs) have improved significantly, now matching private condos in design and facilities but at lower prices....