Given their position, the strong condition of the housing sector, and developers’ need to build up their land banks, market analysts anticipate fierce competition for two government land sale (GLS) sites for private housing launched on Thursday (April 15).

The Urban Redevelopment Authority (URA) has issued a tender notice for a site in Lentor Central, while the Housing Board has issued a tender notice for a plot in Tampines.

The Tampines Street 62 parcel is slated for an executive condominium, while the Lentor Central site is slated for a private residential development with industrial space on the first floor (EC). They have the potential to produce 1,195 residential units when combined.

The 99-year leasehold parcels are verified list sites under the GLS program’s first half, which ensures they were released on time, independent of demand. Reserve list areas, on the other hand, are placed up for tender when a developer submits a proposal that the government considers suitable.

For the second half of 2020, both the Lentor Central plot and the EC site in Tampines were carried over from the GLS reserve list.

According to Colliers International research head Tricia Song, the introduction of the verified list sites is not a response to recent strong developer purchases or talk of further curbs. “Any changes in housing supply policies would be included in the next GLS initiative, which will be released in the second half of 2021,” she added.

After being significantly decreased in the second half of 2020 owing to the effects of the Covid-19 pandemic, the availability of private residential housing from reported GLS sites was modestly expanded for the first half of this year.

According to JLL Singapore’s Mr Tan Hong Boon, executive director (capital markets), and Mr Ong Teck Hui, senior director, supply from reported GLS sites was reduced from 4,335 units to 2,875 units in 2019 and 1,930 units in 2020. (research and consultancy).

Developers whose developments are increasingly selling down have started sourcing to replenish their land banks as unsold inventory declines.

The Lentor Central plot, which is part of the current Lentor Hills Estate, spans 17,279.9 square meters and has a maximum gross floor area (GFA) of 60,480 square meters. The 99-year leasehold site, which is adjacent to the Thomson-East Coast Line’s forthcoming Lentor MRT station, is projected to produce 605 units.

According to Mr Lee Sze Teck, director of analysis at Huttons Asia, the Lentor Central location is potentially the safest under the first-half 2021 GLS scheme.

“Because the last launch in the region was The Calrose in 2005, there would be pent-up interest. The commercial aspect will provide the area and potential projects with much-needed amenities “he said

“The stock of unsold unfinished units is rapidly declining, with over 3,000 new private purchases in the first quarter of 2021. The Lentor Central site would have an incentive for land-scarce developers to add to their land reserve. More than ten bidders are anticipated, with a top offer of $1,000 to $1,050 per sq ft per plot ratio (psf ppr) “Added he.

The Tampines Street 62 land parcel has a site area of 23,799.2 sq m and a gross floor area of 59,498 sq m. Around 590 EC units are expected to be generated at the facility.

Mr Lee pointed out that Tampines has seen a slew of HDB Build-To-Order releases in recent years, resulting in a huge pool of future EC upgraders.

“The popularity of Parc Central Residences attests to the high level of demand. We anticipate up to ten bidders and a top offer of $550 to $600 psf ppr “he said

On July 22, the tender for the two land parcels would close at noon.