Land prices exceed 30% in H2 as developers regain appetite: JLL

Developers have regained their appetite for land acquisition and confidence in the residential market.

Land prices in government land sales in the second half of 2025 (H2) moved toward the upper end of market expectations, JLL said.

“This reflects that developers have regained their appetite for land acquisition and confidence in the residential market, particularly for urban land with suitable size and consideration,” the firm’s report said. It noted the last time land prices exceeded market expectations by over 30% was in 2021.

However, it does not guarantee the successful sale of plots in the Northern Metropolis, Alkan Au, head of value and risk advisory at JLL, said.

"Developers remain hesitant towards large-scale projects requiring heavy infrastructure investment as the housing market has not fully recovered.

To sustain the land price with more concrete demand, the Government will have to lead with upfront public investment in infrastructure and adopt an 'industry-first' approach,” Au said.

Au added that Northern Metropolis land must serve education hubs and high-value industries rather than a source of fiscal revenue. Flexible partnership models such as profit-sharing or joint ventures may attract developers’ interest. 

"In addition, the Government should prioritise releasing urban sites with existing or near-complete transportation networks and utilities, as these are more attractive to developers,” Au said.