Singapore is moving forward with a plan to release the most private housing supply since 2013 even as interest from developers cools.

The government plans to supply land that will potentially yield 11,110 private residential units this year, the Ministry of National Development said in a statement. While price momentum is easing, the ministry said it plans to continue to cater to housing demand.

Developers have grown more cautious about tackling new projects as the city-state’s property market cools due to higher interest rates and lacklustre demand from wealthy foreigners. A housing site last week attracted no bids from developers, a first in more than 20 years, while earlier this year the government rejected the sole bid for a prime state land parcel judged to be too low.

For its part, the government is seeking to tackle a major surge in residential rents, which remain near multi-year highs despite easing in recent quarters.

Singapore will continue to release a “steady supply of private residential units over the next few years” accounting for prevailing economic and property market conditions, the ministry said. Land sites confirmed for tender in the second half of this year include nine private residential sites and one commercial and residential site.

  - Bloomberg