Knight Frank Commentary | H2 2026 Government Land Sale Programme

Knight Frank Commentary | H2 2026 Government Land Sale Programme 

As demand for non-landed private homes remains supported by Singapore residents, the government continues to maintain stable levels of new supply above 9,000 units (combining both the Confirmed and Reserve List), with a steady 4,745 units on the Confirmed List that is similar to the 4,575 units in H1 2026.  

In today’s announcement, the government also showed that it is determined to move commercial office activity into decentralised locations, by moving the Town Hall Link site from the Reserve List to the Confirmed List in order to restart the decentralisation initiative. In contrast, the lack of any commercial sites, whether on the Confirmed or Reserve Lists in the Downtown Core Planning Area has become an obvious omission, discomfortingly so. Although most office occupiers are not expanding significantly at the moment due to the prevailing global uncertainty, when economic clarity reemerges and business growth resumes in a more substantial and sustained manner, the lack of new supply for organic expansion of office space could lead to escalating rental premiums in the central CBD.

In contrast, decentralised locations beyond the borders of the fringe areas (such as Paya Lebar and one-north) currently tend to be less popular with office users, and it would only be reasonable for developers to factor in a decentralised rental discount when formulating a realistic and viable land cost for the Town Hall Link site.

Perhaps a forward-looking discounted office rent for a location such as Jurong East could be the catalyst for a realistic land rate and would be incentive enough to lure more office users to the Western side of Singapore when operational, and make decentralised office locations outside the Central Region trendy. But before that can happen, the government would need to be able to accept a reasonable land price and corresponding land rate that factors a future decentralised rental discount that would make sense for commercial firms that are used to a CBD location to relocate westward.   

Confirmed List

Orchard Boulevard

The land parcel at Orchard Boulevard is the third plot within the area to be offered for tender. Its location along Orchard Boulevard is a quieter and more exclusive stretch compared to the main Orchard Road shopping belt.  While slightly set back from the busiest retail spine, the plot remains within close walking distance to Orchard Road, allowing it to tap into the amenities and prestige of Singapore’s premier shopping district without the congestion. This positioning supports luxury residential positioning, appealing to higher-end buyers seeking privacy alongside accessibility.

In addition, the presence of embassies and established luxury residences reinforces the area’s reputation as a high-end residential enclave. Additionally, the Singapore Botanic Gardens are a short distance away, adding lifestyle appeal through access to green space.

The healthy sales at UPPERHOUSE at Orchard Boulevard attests to the demand for prime residences. Well-located projects have drawn solid interest from local buyers fuelled by wealth accumulated in the past two generations and the view that prime properties remain sound long-term investments despite the Additional Buyer’s Stamp Duty (ABSD) on the ownership of multiple homes.

East Coast Road

The East Coast Road GLS site is attractive given its prime location within the established Siglap enclave, an area known for its lifestyle appeal, proximity to amenities, and limited supply of new low-density private housing. This site also yields the lowest number of expected units within the project, among all the other sites on the H2 2026 GLS lists. Surrounded predominantly by low-rise landed homes and small-scale commercial uses, the site is positioned for a boutique residential development for occupiers seeking larger homes in a mature neighbourhood.

However, the minimum unit size of 100 sqm introduces a scalability constraint for developers. With an estimated project total of around 85 units, there is some limitation in the product mix. The restricted ability to optimise returns through smaller, higher-quantum-per-square-foot units, narrows the target market to buyers who are able to afford larger absolute prices.

Jurong East Avenue 1 (EC)

This EC land parcel at Jurong East Avenue 1 is expected to garner attention from developers when launched for tender, and from buyers when the project is launched for sale. The immediate surroundings of the site are predominantly established HDB residential blocks, indicating a mature and well-populated neighbourhood. Plans to decentralise employment zones to Jurong East also adds to the site’s appeal. This ready catchment of demand would draw from HDB upgraders and owner-occupiers more so than purely investor-driven buyers.

Although the site is not immediately adjacent to Jurong East MRT interchange, it lies within a short distance of the Jurong East commercial node, where major malls such as JEM and Westgate are located. In addition, it is located within walking distance to a station (JE4) along the new Jurong Regional Line (JRL) that is presently under construction. This new MRT station is expected to be operational when this EC project is completed.

Town Hall Link

The Town Hall Link site could revive developer interest in Jurong East, especially after the earlier JLD parcel was resized and reconfigured into a more manageable plot, amid the government’s efforts to establish a decentralised CBD outside the Downtown Core. The site can potentially yield about 1,200 homes, alongside over 400,000 sq ft of office space and a sizeable retail component, forming a significant integrated development. Its appeal is further strengthened by proximity to major amenities, transport nodes, and attractions such as Jurong Lake Gardens and the Science Centre, while its scale will likely attract large developers or consortiums. The attractive attributes of the site are not in doubt. However, it remains to be seen whether the government will accept a bid that reflects the reality that decentralised offices of scale are not yet proven among large blue-chip corporates.