June 07, 2022
7 June 2022, SINGAPORE – The government has today announced its public land sales slate for 2H2022 which sees a further ramping up of the supply of private housing on the Confirmed List – this is the fourth straight increase in the number of residential units offered in the Confirmed List under its half-yearly government land sales (GLS) programme.
The upcoming GLS programme will feature 6 Confirmed List sites - comprising 5 private residential sites (including one Executive Condominium (EC) site) and a commercial & residential site – up from 5 sites in the 1H2022 GLS programme. Of the 6 Confirmed List sites, 3 were moved up from the 1H2022 Reserve List (Bukit Timah Link, Hill View Rise, and Lentor Gardens), while 3 others were newly-added (Marina Gardens Lane, Tengah Plantation Loop (EC), and Tampines Avenue 11). All in, these 6 sites can yield about 3,505 private residential units (including 495 EC units) and 14,750 sqm gross floor area of commercial space.
The 3,505 private residential units under the 2H2022 Confirmed List is about 26% higher than the 2,785 units in the 1H2022 slate. It is also the highest number of private housing supply under the Confirmed List since 3,915 units were offered in the 2H2014 GLS.
Source: PropNex Research, MND
Meanwhile, 8 sites have been placed under the 2H2022 Reserve List which will be made available for application, providing developers the option to trigger the sites for sale should they see demand for them. The Reserve List comprises 6 private residential sites (including two EC sites), a White site and a hotel site. These Reserve List sites can offer an additional 3,805 private residential units (including 1,000 EC units), 80,000 sqm GFA of commercial space and 530 hotel rooms.
Ismail Gafoor, CEO of PropNex Realty:
“The 6 Confirmed List sites are quite well spread out including sites in the suburban areas, the city fringe and the city centre, which will provide would-be homebuyers with varied private housing options.
Following a bumper year of new home sales in 2021, a record low level of unsold new private home stock (14,087 units (ex. ECs) as at the end of Q1 2022), and the healthy response at recent launches, we were cautiously optimistic that the government would ramp up the private housing supply for 2H2022. We are heartened that it has raised the private housing supply by about 26% in the upcoming GLS, however, we think the increase is measured and may not fully satiate the hunger for residential land among developers, who are looking to replenish their land inventory after the robust home sales last year. To this end, we would expect developers to remain interested in the collective sales market, tapping suitable and realistically priced en bloc sites to complement their development pipeline.
One highlight of the 2H2022 GLS is the Marina Gardens Lane site that is scheduled to be launched for sale in December 2022. This plot – which can yield 795 homes and 750 sqm of commercial space – will kickstart the development of the Marina South neighbourhood. We anticipate homes in the future Marina Gardens Lane project to be highly desirable, given the plot’s location in downtown Singapore, potential connection to the upcoming Marina South MRT station, and likely spectacular views all-round of the city skyline, Gardens by the Bay, and the sea to the south. There would be excitement among developers for this site and we think bidding will be keen as developers will want to get a first-mover advantage in the new Marina South precinct.”
Wong Siew Ying, Head of Research and Content, PropNex Realty:
“The upcoming 2H2022 GLS Confirmed List offers developers with a good mix of project development sizes, from 160 units at Bukit Timah Link to 1,190 units in the mixed-use development in Tampines Avenue 11. In particular, the Tampines Avenue 11 site will not only provide a timely injection of new mass market home, but also offer greater convenience to residents around the area, with its 14,000 sqm of commercial space – being nestled in an area with several new public housing projects as well as an upcoming EC project at Tampines Street 62 (Parcel A).
Meanwhile, the Bukit Timah Link site – with a palatable development size of 160 units – should garner healthy interest among developers, including smaller players. Apart from its attractive location near the Beauty World MRT station and opposite the upcoming Jalan Anak Bukit mixed-use development, would-be bidders will be emboldened by the strong sales at the adjacent The Linq @ Beauty World which sold 96% of its units at an average price of $2,150 to $2,200 psf during its launch in November 2020.
The government is keeping up with its efforts to build up the residential population in the Lentor area. GLS 2H2022 offers one Lentor site in each of the Confirmed List and Reserve List. Lentor Gardens under the Confirmed List can potentially offer 530 residential units. Being slated for sale in October 2022, we expect prospective bidders of the site to take reference of the GLS tender outcomes for the nearby Lentor Central and Lentor Hills Road (Parcel B) sites which will close on 13 September. This may help to ensure land bids are measured given the anticipated influx of new homes in the Lentor area.
Each of the Confirmed List sites has their own strengths. For the plot in Hillview Rise, we think it is attractive as it is within walking distance to retail offerings at nearby Hillv2 as well as to the Hillview MRT station on the Downtown Line. In addition, it is also located in an exclusive private residential enclave, where the supply of new private condos is still relatively limited.
The Tengah Plantation Loop EC site – which can yield 495 ECs – will provide private housing to complement the large number of HDB flats in the new Tengah estate. It is one of four EC sites in the Tengah and Bukit Batok area, with the others in the vicinity being: Tengah Garden Walk, Bukit Batok West Avenue 8, and Bukit Batok West Avenue 5. We expect the land bids for Tengah Plantation Loop EC site to be strong, and may potentially set a new record land rate price for an EC GLS site, given its proximity to the Jurong Lake District.”
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