River Valley, Queenstown & Pasir Ris will top land sales in 2024.
In the first half 2024, ten new sites for private housing will be available under the Government Land Sales programme. The list includes eight confirmed sites and two reserve sites.
Analysts have been drawn to a number of sites, including a prime parcel in River Valley’s central area, a site along Margaret Drive, in Queenstown, and ECs in Jalan Loyang Besar.
The River Valley Green parcel A plot is 0.93 hectares (ha) in size and has the potential to yield 380 homes. Site has direct access to Great World MRT Station and is just a few steps away from Singapore’s Orchard Shopping Belt. The site is scheduled to open in March of next year.
The site’s central location, accessibility and ease of access are expected to generate a lot of interest.
CanningHill Piers and Riviere, as well as Irwell Hill Residences were previous condo launches that attracted strong buyer interest.
CanningHill Piers sold 77% of its 696 units for an average of S$3,000 per sq. foot (psf), during the launch weekend of November 2021.
Developers also prefer the River Valley site over the adjacent Zion Road parcel A, which put up for auction on Monday. The River Valley plot is smaller and therefore has a lower price. Developers are not also required to include serviced apartments for long-term stays, which reduces their initial capital costs.
The River Valley site is a bit irregular and longish, which will require some creative thinking when it comes time to design the project.
The parcel on Margaret Drive measures 0.95 ha, and it can be used to build 460 houses. The site is located just minutes from Queenstown MRT Station and has a minimum 500 square metres of childcare space. The site will be launched in May 2024.
This parcel of land at Margaret Drive, if sold, will be the area’s first land sale since 2017.
The Stirling Road site where the 99-year leasehold Stirling Residences is now located attracted 13 bidders in May 2017. Hong Kong’s Logan Property Holdings won with a bid exceeding S$1 billion. Nanshan Group from China and Logan Property Holdings of Hong Kong were also bidders. The land rate was S$1,050.70 per plot ratio. This was a record for Queenstown at the time.
The Housing & Development Board resale value of a new condominium in Queenstown is among the highest. This can be used to tap into upgraders’ demand. Buyers use the proceeds from resale prices as a way to move into the private housing market.”
On a 2.84-hectare site, the Jalan Loyang Besar EC will produce 710 units. The Pasir Ris MRT station, Pasir Ris Mall, and White Sands are all within walking distance.
Observers believe this site will be hotly contested in the May 2024 tender. It is the only EC site confirmed on the list. Developers will closely monitor this segment due to its compelling proposition.”
The competition for the last EC property launched in Tampines street 62 (Parcel A) was fierce. In October, nine bidders submitted a total of S$543.28million. This is equivalent to a land rate record of S$721 per square foot ppr.
The last EC was launched in Pasir Ris in 2013 for the 99-year leasehold Sea Horizon.
ECs, which are the most affordable hybrid private homes currently, appeal to a wide range of buyers, including first-time buyers and upgraders.
Five other residential sites are included in the confirmed list supply for H1 2024, including a mixed use development at Tampines Street 94, and another in Media Circle, Buonavista, which is slated to be serviced apartments. The apartments are deemed to be of moderate size and will attract moderate demand.
The Tampines Street 94 commercial and residential parcel spans 2,35 hectares. Retail space is capped at 10,500 sq m, and childcare spaces are capped at 650 sq m. The project is set to be launched in June 2024 and can produce 585 houses.
The Tampines site will likely be the only major shopping mall within 800 meters for the increasing number of homes in this area.
Developers looking for retail exposure in the heartland may find this site appealing. The plot may also be a good place to satisfy pent-up demand for housing, as there are no GLS sites in the vicinity since December 2000 when Bay Water Residential Site along Bedok Reservoir Road was awarded.
On the list of confirmed sites are also a plot on Canberra Crescent, which can accommodate 375 homes. Another plot is located in Dairy Farm Walk, where 530 homes will be built, and a third in Tengah Gardens Avenue, where 860 homes will be built.
Two new sites have been added to the H1 GLS Programme reserve list. One is a River Valley Green plot for 575 houses, and the other one is in Bayshore Road. The government will only sell sites on the reserve list if the developer’s minimum price is accepted by the government.
Market watchers think that of the two parcels, the Bayshore Road one is most likely to trigger a tender.
Bayshore will be the first site to sell private housing in the area. The proximity of East Coast Park to the Bayshore MRT and East Coast Park to developers and buyers is expected by Mr. He.
The developers would want to gain a competitive advantage by being the first to build in this area. However, since about 3,000 residential units are expected to be constructed in Bayshore, future competition on the market could be fierce.
Tay said that developers could be interested in the Bayshore Road site, as they know the project will sell at a premium due to the reclamation of Long Island and the development off the east coast of Singapore.
This latest round of GLS for the first half 2024 will increase the supply of private homes including executive condos by 5.6% to 5,450 units, up from 5,160 in H2 2023. The 5,450 units are made up of 1,035 units that were carried over from the GLS Programme for H2 2023 and 4,415 new sites.
The highest confirmed supply since H2 2013!
“The supply of private housing continues to be ample, but the market is not oversaturated, as we are focusing on the upcoming projects.”
This will help regulate land prices and bids, as well as signal to homebuyers the government’s commitment to maintaining a sufficient supply of housing to keep prices under control.
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