The focus of the latest Government Land Sales exercise seems to be the Core Central Region, where 79 percent of collective sales have taken place so far this year.
The Urban Redevelopment Authority said on Wednesday (27 June) that it intends to release six confirmed list sites and nine reserve list sites under the second half 2018 Government Land Sales (GLS) programme. These sites could yield up to 8,040 private homes, including 1,210 executive condominiums (ECs).
Specifically, the confirmed list sites could contribute about 2,705 private units, including a 2.49ha plot at Tampines Avenue 10 that can yield 695 EC units. There is also a 3.82ha white site in Pasir Ris Central, which may generate 535 homes.
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The EC plot and the white site will be launched for sale in August and October respectively.
The government will also launch the tender for three private residential sites – a 1.16ha plot in Kampong Java Road (435 units), a 1.62ha site at Sims Drive (650 units) and a 0.78ha land parcel at Middle Road (390 units). The first site will be offered for sale in October, while the other two tenders will be held in November.
“All are well located and likely to attract strong interest from developers,” said OrangeTee & Tie.
For instance, the Kampong Java Road plot is located in District 9 just opposite Newton MRT station and on the outskirts of Orchard Road. Sims Drive is near Aljunied MRT station and Paya Lebar Central, while Middle Road is close to Bugis MRT station, Bugis Junction and Suntec City.
OrangeTee & Tie expects the Kampong Java Road plot to be sold for $1,400 to $1,600 psf per plot ratio (psf ppr), the one at Sims Drive could fetch $1,000 to $1,100 psf ppr, while the Middle Road site is projected to be popular as well.
According to property consultancy JLL, the three private residential sites and the white site could yield a total of 2,010 housing units (excluding ECs), down 14 percent from the 2,325 units supplied by five private residential sites under the H1 2018 confirmed list.
“The moderation is probably due to concerns of oversupplying the market since the buoyant collective sales market is generating the bulk of future supply.”
In fact, land sold by the government from the second half of 2016 to the first six months of this year will only account for 30 percent of residential units to be developed compared to 70 percent for en bloc sites.
It said the focus of the latest GLS seems to be the Core Central Region (CCR), where 79 percent of collective sales have occurred so far this year.
Kampong Java Road and Middle Road are both in the CCR while Sims Drive is situated in the Rest of Central Region (RCR). Although there were no private residential sites in the Outside Central Region (OCR) under the confirmed list, the white site at Pasir Ris will still yield housing units.
“Although the three GLS sites could help to meet demand from developers, it is uncertain as to whether they will mitigate optimistic land prices. They are also unlikely to dilute demand for collective sale sites, especially those in the prime districts for which there is keen interest,” added JLL.
As for the nine reserve list sites, these comprise one EC plot, two white sites and six land parcels for private homes. Overall, these could yield approximately 5,335 private units, including 515 ECs.
Meanwhile, the confirmed list sites could generate 42,000 sq m of commercial space, while the reserve list site can yield 82,000 sq m. These include a 4.2ha confirmed list plot in Club Street yielding 390 hotel rooms, while the reserve list site in Marina View can provide 540 hotel rooms.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com