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The government has preserved the price of private residential developments per Government Land Sales (GLS) plan of action over the first 6 months of the year, based on the supply overhang plus the developers’ bids on land moderated following the cooling measures new policy.
“The Government pursues on its role which is to check the property development strictly and make some adjustments in the supply for GLS programmes in the near future when needed, explained by Ministry of National Development (MND), December 3, Tuesday.
The recent supply comprises three verified list sites plus eight sets aside list areas that produce of more or less 6,490 private homes which measure 14,000 sqm GFA, Gross Floor Area for commercial spaces and hotel rooms of at least 1,070.
Among 6,490 suggested units, 1,775 are categorized under confirmed or verified list, while there are 4,715 units under reserve list, which means, it can’t be set off for sale. The said 1,775 units coming from confirmed list areas or sites are 60 units, which means 3.5 percent greater than 1,715 units of 2019 Government Land Sale programme’s second half.
Government Land Sales Confirm List 2020
The three verified or confirmed list involves two private residential development sites, namely, the one EC or executive condominium area in Yishun and one residential and commercial site along Jalan Anak Bukit Timah having the possibility of producing 1,775 private residential homes along with 600 executive condominium units and commercial space of 22,000 sqm GFA.
Ms. Christine Li, the chair of research, Cushman & Wakefield, Singapore and Southeast Asia explained that the government was cautious by pushing a controlled figure of sites under the confirmed lineup while keeping the volume of supply under reserve list.”
The identified three sites over a confirmed list were the lowest for the last five years, she added. Additionally, the volume of units are coming from the area at Jalan Anak Bukit that yields 865 units with a commercial space that runs for about 20,000 sqm.
Setting aside the EC units, it is expected to have only 1,175 private residential property units that will be released under confirmed list, and said to be the lowest ever since 2016’s first half, when the private residential units reached only to less than a thousand approximately, only 925 were released.
“While the need for private residential housing increases for past consecutive two quarters, the total deal volume stayed decent parallel to the period where property development cooling measure’s policy is on its way of implementation,” MND told.
Meanwhile, the demand of developers for residential areas stayed moderate thus bidding interest over GLS tenders progresses, further added.
Moreover, the supply of residential housing plots in the market remains soaring, currently about 39,000 units, although it subsided drastically for past few months, MND divulged.
In addition, the pipeline supply covers unsold units for as many as 34,000 coming both from collective sales and GLS sites with an approved proposal, plus 5,000 units over sites that are still pending in proposal approval.
Keeping GLS Synonymous for 2H2019
Thus, the government came up with the idea of keeping private residential housing units supply under a confirmed list for the programme 1H2020 GLS synonymous to that 2H2019 GLS programme, said MND.
Ms Tay Huey Ying, the department head of research and consultancy of JLL, Singapore, anticipates the residential housing site at Tanah Merah Kechil to win the interest of the public due to its location which is a few steps only to Tanah Merah MRT Station and comes in its “pleasant housing size” that totals to 310 amazing residential units.
Although the rising Jalan Anak Bukit area is just close to the busy Beauty World MRT station, she still considers this as critical among the 3 confirmed lineup sites due to proportion or size. Blended with the forecasted big investment outlay, we would be able to witness a parcel initiating moderate competition among business tycoon developers,” she stressed.
The reserve list covers four private residential housing sites, one executive condominium, one hotel site, and three white sites. These sites can produce private residential approximately 4,715 units plus Executive Condo of 595 units, commercial space which measures 92,000 sq m GFA and hotel rooms that totals to 1,070.
The sum amount for commercial areas available from both the reserves and confirmed sites at an area of 114,000 sq m which is 24 per cent higher compared to the GLS programme which is only 92,000 sq m. during 2019 second half. The volume of the latest commercial space starts from the reserve list of 78,000 sq m. This is a multi-use white site around Woodlands Regional Centre.
This is one among the four residential housing sites, three white sites, plus another one hotel site that was pulled up over to GLS programme first half of 2020 from the past half-year.