Mark Yip, CEO at Huttons Asia, noted that the government increased its supply of land for residential development by almost 25% to 2,000 housing units – marking the steepest hike since 2H 2016 when the supply of residential units was raised by 39.1%.
The Ministry of National Development (MND) on Thursday (10 June) unveiled four Confirmed List sites and nine Reserve List sites under the second half 2021 Government Land Sales (GLS) Programme.
The sites can yield around 6,860 private homes, 90,000 sq m gross floor area (GFA) of commercial space and 530 hotel rooms.
The Confirmed List comprises four private residential sites: Jalan Tembusu (645 units), Lentor Hills (Parcel A) (595 units), Dairy Farm Walk (385 units), and Bukit Batok Ave 8 executive condominium (EC) site (375 units), that can yield around 2,000 private homes.
The Reserve List, on the other hand, comprises six private housing sites, including one EC site, one hotel site and two White sites. MND noted that the sites can yield around 4,860 private homes, including 700 EC units, 530 hotel rooms and 90,000 sq m GFA of commercial space.
“The government has carefully calibrated the supply of private housing in the 2H2021 GLS Programme, taking into account several factors,” said MND.
“On balance, the government has decided to moderately increase the supply of private housing on the Confirmed List to 2,000 units for the 2H2021 GLS Programme, up from 1,605 units for the 1H2021 GLS Programme.”
This comes as the unsold inventory of private housing units has dropped in the past year amidst strong demand, said MND.
“Nonetheless, even as the economy is recovering from the recession in 2020, there are continued uncertainties in the economic and labour market conditions due to the ongoing COVID-19 situation globally and locally.”
Mark Yip, CEO at Huttons Asia, noted that the government increased its supply of land for residential development by almost 25% to 2,000 housing units – marking the steepest hike since 2H 2016 when the supply of residential units was raised by 39.1%.
“It is a good response to the hunger for land displayed by developers in recent GLS tenders,” he said.
Yip described the introduction of two more sites in Lentor, on top of an ongoing tender at Lentor Central that will close in July, as a calculated move. He said this will “ensure that tender bids for Lentor Central are measured because there will be another site put up for sale in another two months”.
Meanwhile, MND said the application to put up the White site at Marina View for sale by public tender has been accepted, after a developer committed to submit a minimum bid of $1.508 billion for the site.
Listed on the 1H 2021 Reserve List, the site can yield around 905 private homes, 540 hotel rooms and 2,000 sq m GFA of commercial space.
The Urban Redevelopment Authority (URA) is set to release the site for sale by public tender on 28 June 2021.
“The site at Marina View will further inject more homes into the CBD supporting the government’s vision of making the CBD vibrant after working hours. With a hotel component as part of the development, it shows the confidence of the party who triggered the site that global travel will resume soon and it is key to secure a first mover advantage by acting now,” said Yip.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
