The total supply of 10,220 housing units on H2 2014 Government Land Sales (GLS) Programme was the least number of new residential units made available since the H2 2009 GLS Programme, according Chia Siew Chuin, Director of Research and Advisory at Colliers International.
Announced yesterday, the H2 2014 GLS Programme comprise nine Confirmed List sites and 14 sites on the Reserve List.
Analysts’ top picks in the Confirmed List which are expected to be well-received by the market include Jurong West Street 41 (Parcel B), Tampines Road, Lorong Puntong, and Holland Road.
Based on Lakeville’s price of $1,318 psf, the parcel in Jurong West is expected to have a selling price of $1,280 to $1,330 psf, according to Christine Li, OrangeTee’s Head of Research and Consultancy.
The site was transferred from the previous Reserve List, and is near Lakeside MRT Station.
Meanwhile, the newly introduced site along Tampines Road is within walking distance to Kovan MRT Station and located within a prominent private landed housing estate.
Li foresees an expected selling price of $1,300 to $1,350 psf for the site, based on Kovan Regency’s price of $1,272 psf.
The mixed commercial-residential site at Holland Road is also highly appealing, as it is near the Holland Village MRT station and employment areas. As part of the Holland Village Extension Plan unveiled in the Master Plan 2014 (pictured), the site sits at the heart of Holland Village.
Chia said, “There should be a sizable potential pool of HDB flat upgraders from Buona Vista, Commonwealth and Queenstown estates as well as demand from professionals who work in the nearby one-north and other condominiums owners who might wish to relocate from older developments in the vicinity to a newer one.”
She added the new private residential site at Dundee Road introduced in the Reserve List also has good locational attributes that will be popular with homebuyers.
“The site is located right next to the Queenstown MRT Station and adjacent to the popular Commonwealth Towers which is under construction. The proposed development should attract a potential pool of HDB flat upgraders from Commonwealth, Queenstown and Redhill estates given that HDB flat resale prices at these centrally located estates tend to be higher than the general price levels of most public flats in other parts of the island,” she said.
Despite the reduced number of units on the Confirmed List due to the residential market’s recent performance, Desmond Sim, Head of CBRE Research is confident the state will continue to provide a steady pipeline of residential sites to ensure business continuity for developers. “Interestingly, four of the six sites on the Confirmed List are newly introduced this half. As anticipated, the ratio of the supply in the Confirmed and Reserve Lists is in the 40:60 region,” he said.
Image source: URA