2H2023 government Land Sales (GLS) Programme includes eight development sites on the approved list that will collectively produce around 5,160 private housing units, which includes five60 executive condo (EC) units.
The housing supply for private homes under the 2H2023 GLS Programme is 26% higher than the housing available as part of the 1H2023 GLS Programme, which included 4,090 new residential units. This implies that the government will add approximately 9,250 units to construction in 2023. This, is said to be the highest number in a decade.
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This list of reserve sites, comprising sites that must be made tender eligible it comprises 6 residence sites (including 2 EC sites) and one commercial site and one white site as well as an hotel site. The Reserve List sites could yield 3,430 private residential units (including 855 EC units) approximately 1 million square feet of commercial space and 515 hotel rooms.
Edmund Tie’s director of research and consulting, Lam Chern Woon, observes that the majority of the residential sites in the reserve and confirmed lists are located in the heartlands, albeit with a few areas of exception, like the plots located at Orchard Boulevard, Zion Road (Parcels A and B), Pine Grove (Parcel B) and Holland Drive. “The selection of the top sites was carefully crafted to ensure that the amount of supply isn’t excessive,” he says, saying that the government is continuing to impose a “light touch on hotel and commercial supply, preferring to put the majority of supply on the Reserve List.
Supply increase to stabilize the market for housing
In a press announcement The Ministry of National Development said that the latest GLS supply “will make the total pipeline of housing units for private owners (including ECs) to about 63,500 units. It will also cater to an ever-growing demand.”
The ministry also states: “The increased confirmed list of housing units for 2H2023 will be added to the pipeline supply to meet demand for housing of the population. Particularly, it will bring the total pipeline of housing units for private homes (including ECs) to about 63,500 units. This includes 50,200 units granted planning approval, and 13,300 units of GLS sites and En-bloc sites that are yet to receive approval for planning”.
Based on plans for development submitted According to the development plans, 40,400 homes are scheduled to be completed between 2023 and 2025. This is more than double the number of units that were completed between the years 2020-2022. “Releasing additional land parcels could ensure buyers that there’s a sufficient homes for sale in the private market and an increase in the supply of homes could assist in limiting price increases and stabilize the market over the long term,” says Christine Sun who is the senior vice president for research and analysis at OrangeTee. Sun adds that the newly released land parcels look appealing and offer good housing choices for potential buyers.
“With the market for collective sales remaining in a state of decline and the government having stepped up the supply of land to meet the increasing requirement for houses,” says Lee Sze Teck who is the head of the research department of research at Huttons Asia. He further states: “The sites on the confirmed list will be attracting a lot of attention from developers. A lot of sites are immediately connected to an MRT station, or just a few steps from the MRT station. Some are in new locations that have not had new supplies for a long time”.
One site that is on the list is one 1.57-ha parcel in Lorong 1 Toa Payoh, which could yield 775 units. According Lee Lee the developer, it’s been around an eight-year period since authorities published the first construction site for a condominium located in Lorong 1 Toa Payoh.
“With five-room flats in The Peak @ Toa Payoh over $1 million and some recently MOP-ed apartments exceeding $800,000, there’s plenty of prospective HDB upgrading buyers,” he says, saying that the best price on this site could exceed $1,200 per sq ft per.
The 0.68ha site at Orchard Boulevard is also on the approved list. It has the potential of housing the 270 homes and 5,38 square feet in commercial area. The site will be accessible to the Orchard Boulevard MRT Station.
Sun describes the proposed project for the site as a possible ‘trophy project’ for developers considering its central site in Orchard and its proximity with orchard road. Orchard Road shopping mall. “The region hasn’t seen an entirely new GLS site offered to the market in the last five years. Therefore, developer and buying interest is expected to be healthy for this parcel,” she says.
The most recent GLS site that was released in this region was Cuscaden Road, which SC Global transformed into the luxurious Cuscaden Reserve. Cuscaden Reserve. This site attracted nine bidders back then and the winning price of $2,377 psf per ppr was announced in May of 2018. “With these cooling steps that are crimping foreign demand and reducing the mix of units size, dimension, and quantity (of the development to come) will be required to cater to markets in local. But, it’s an extremely appealing site and the highest offer could be higher than $1,500 per square foot,” says Lee.
Two brand new residential development sites within the Springleaf region have also been highlighted. This neighborhood is now open following the construction on the Thomson-East Coast Line last year. The official list includes the following: a 2.44ha site on Upper Thomson Road (Parcel A) that could yield 595 units, 21,520 square feet of commercial space. It also includes the 3.2ha site on Upper Thomson Road (Parcel B) that could be home to 940 units.
The 1.51ha site with a relatively high plot ratio of 5.6 was also commissioned on Zion Road, and URA estimates that the site could produce 955 units, and the total commercial space is 25,824 square feet. The site connects directly with Havelock MRT Station on the Thomson-East Coast Line. “Mixed-use sites with a direct MRT connection are sought-after by buyers because they offer greater accessibility,” says Lee. “Homes that are on the upper floors will be able to enjoy breathtaking views to the south. There is a possibility of a top price of $1,300 per square foot psf.”
This parcel of land is located near the old Jaik Kim Street GLS site that has been transformed into Riviere by Frasers Property. This GLS site has attracted 10 offers. The winner was awarded $1,732 per sq ft per person.
Another relic of the GLS site was the land parcel on Irwell Bank Road, which has been transformed to become Irwell Hill Residences by City Developments. The site was the subject of seven bids in the period and the winning bid was of $1,515 per square foot per square foot.
There’s another EC site that is on the list that is confirmed that is it’s a 2.01ha parcel located on Plantation Close in Tengah with the potential of producing 560 units. Lee says that the launch the EC site is due to the high sales of recent EC launches such as Copen Grand as well as Tenet. “Following the great success in Copen Grand and Tenet, developers are likely to explore EC sites located in Tengah to increase their landbanks. The site could attract up to eight developers with a price of $650 per sq ft per person.”
Office and hotel supplies
The Reserve List is a white site to develop a mixed-use project located at Woodlands Avenue 2 and a short-term lease commercial site located at Punggol Walk. They have been transferred on 1H2023 Reserve List. 1H2023 Reserve List.
It also has a hotel development site on River Valley Road which was transferred in the reserve 1H2023 List.