Govt to release 14 sites yielding a total of 8,040 homes

 

The Urban Redevelopment Authority said on Wednesday (27 June) that it intends to release six confirmed list sites and nine reserve list sites under the second half 2018 Government Land Sales (GLS) programme. These sites could yield up to 8,040 private homes, including 1,210 executive condominiums (ECs).

Specifically, the confirmed list sites could contribute about 2,705 private units, including a 2.49ha plot at Tampines Avenue 10 that can yield 695 EC units. There is also a 3.82ha white site in Pasir Ris Central, which may generate 535 units.

More: Report: Average Home Prices In Singapore Could Rise By 17% Over 2018-2021

The EC plot and the white site will be launched for sale in August and October respectively.

The government will also launch the tender for three private residential sites – a 1.16ha plot in Kampong Java Road (435 units), a 1.62ha site at Sims Drive (650 units) and a 0.78ha land parcel at Middle Road (390 units). The first site will be offered for sale in October, while the other two tenders will be held in November.

“All are well located and likely to attract strong interest from developers,” said OrangeTee & Tie.

For instance, the Kampong Java Road plot is located in District 9 just opposite Newton MRT station and on the outskirts of Orchard Road. Sims Drive is near Aljunied MRT station and Paya Lebar Central, while Middle Road is close to Bugis MRT station, Bugis Junction and Suntec City.

The property firm expects the Kampong Java Road plot to be sold for $1,400 to $1,600 psf ppr, Sims Drive could fetch $1,000 to $1,100 psf ppr, while Middle is projected to be popular as well.

According to property consultancy JLL, the three private residential plots and the white site will house private dwellings totalling 2,010 units (excluding ECs), down 14 percent from the 2,325 units supplied by five private residential sites under the 1H 2018 confirmed list.

“The moderation is probably due to concerns of oversupplying the market since the buoyant collective sales market is generating the bulk of future supply.”

In fact, land sold by the government from the second half of 2016 to the first six months of this year will only account for 30 percent of residential units to be developed compared to 70 percent for en bloc sites.

It said the focus of the 2H 2018 residential GLS seems to be the Core Central Region (CCR), where 79 percent of the collective sales have occurred so far this year.

Kampong Java Road and Middle Road are both in CCR and Sims Drive is situated at Rest of Central Region (RCR). Although there were no private residential sites in Outside Central Region (OCR) under the confirmed list, the white site at Pasir Ris will yield private residential units.

“Although the three GLS sites could help to meet demand from developers, it is uncertain as to whether they will mitigate optimistic land prices. They are also unlikely to dilute demand for collective sale sites, especially those in the prime districts for which there is keen interest,” added JLL.

As for the nine reserve list sites, these comprise one EC plot, two white sites and six land parcels for private residences. Overall, these will yield approximately 5,335 private units, including 515 ECs.

Meanwhile, the confirmed list sites can generate 42,000 sq m of commercial space, while the reserved list can yield 82,000 sq m. These include a 4.2ha confirmed list plot in Club Street yielding 390 hotel rooms, while a reserve list site in Marina View can provide 540 hotel rooms.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg