The government launched 1H2023 of the Government Land Sales (GLS) program on December 8, with seven sites that are on the Confirmed List and nine sites on the Reserve List. Together 16 sites will provide 7,715 residential units for private residences and 199,750 square meters (over 2.15 million square feet) and commercial areas as well as the hotel room capacity of 530.
Kassia showflat have access to a full range of services, including a swimming pool, sky terrace, and indoor gym.
“The increase in GLS housing supply, which is which is the most housing units listed on the Confirmed List since the 1st of January 2014 was in line to market demand since private demand for housing has outpaced unsold inventory over the last time,” claims Ismail Gafoor the CEO of PropNex.
The seven sites listed on the Confirmed List are able to be converted into 4,090 housing units. This is just 16.7% higher than the amount of units made available in the 2H2022 GLS program according to Nicholas Mak, head of the research and consulting department at ERA Singapore. In the GLS program for 1H2022 and 2H2022, the possible number of housing units grew to 39.3% and 25.9% in the previous period the expert says.
“Although it is the case that government officials are increasing its supply of land for private dwellings as part of the GLS program 1H2023 but the rate of growth has slowed,” Mak says. Mak. “A possibility behind the slower rate of growth in the housing supply could be the fact that the government is trying to balance expanding the supply of private housing and being aware of the possibility of a slowdown in economic growth in 2023.”
“Based on the last five years’ figures the average volume of transactions is estimated to be between 10,000-11,000 per year,” says Steven Tan who is the chief executive officer of OrangeTee & Tie. “The rise in supply for 1H2023 to around 4000 residential units will ensure that there is enough supply to meet the demand, after taking into consideration supply from the market that is en bloc. This will result in a stabilising impact on the cost of homes.”
The 4,090 units listed on the Confirmed List will increase the pipeline of housing for private use (including ECs) to about 65,000 units. From these, around 33,600 units will be built in the coming two years, much more that the 11500 homes that have been completed in 2021. “These homes that are completed will allow owners to meet rental needs in the near long term,” says URA.
Two of the sites in the Confirmed List are white sites located at Marina Gardens Crescent and Jurong Lake District and the other two of them are residence sites located at Champions Way in Woodlands and Media Circle in one-north. Three remaining residential sites that are located situated at Jalan Tembusu Tampines Street 62 (the executive condo or EC site located at Parcel B) and Lentor Central — were carried by the 2H2022 Reserve List and were added to The 1H2023 Confirmed List.
However, despite being subject to property cooling measures introduced in December 2021 and close of September “housing demand was still outpacing supply as Singapore adjusted to the pandemic era” claims Leonard Tay, head of research at Knight Frank Singapore. As there was a rise in the URA Private Residential Rental Index increased by 20.8% in the first nine months of 2022 and The Price Index gained 8.2% in the same time period according to Tay.
Tay anticipates that the residential site located at Champions Way to see strong interest from developers. The site will produce 345 residential units. It is located close to the Woodlands South MRT station on the Thomson-East Coast Line. The site is situated in Woodlands Regional Centre. Woodlands Regional Centre, new facilities within the region include the forthcoming integrated healthcare complex, which will comprise the hospital for acute treatment, a community nursing home and hospital due to be opened gradually in the coming two years.
The last residential private site in Woodlands offered for sale under the GLS program was nearly a decade earlier (in July 2011). This was the site located at Rosewood Drive, off Woodlands Avenue 2 which is now being transformed as the 689-unit Parc Rosewood, which is owned by Fragrance Group and Aspial Group.
Another residential suburban site that could be a draw for developers who are interested in the 1H2023 GLS program would be Tampines Street 62, an EC site located at Tampines Street 62 (Parcel B). The 2.8 ha could be transformed into 700 units of EC project. The land parcel is close to Tenet the 618-unit EC created jointly with Qingjian Realty, Santarli Realty and Heeton Holdings. It was launched on the 3rd of December. Tenet was able to sell the sale of 447 units (72.3%) sold at an average price of $1,360 per square foot. The price average is new record for ECs.
It is just a few steps away from the soon-to-open Tampines North MRT station on the Cross Island Line, the EC land parcel could attract bids of between $474 million and $500 million in the event of the station’s launch, which is between $630 and $664 per square foot per person, according to Mak.
“The GLS site at Media Circle is among the most attractive sites in the 1H2023 Confirmed Listing,” says the ERA’s Mak. The site is situated just 10 minutes from the One-north MRT station as well as only five minutes from the Ayer Rajah Expressway (AYE) which is one the most important highways in Singapore. “In addition it is also a site can be surrounded with a variety of restaurants, gyms, fitness centers, and other facilities that are sure to attract young couples and families,” he adds.
The site located at Media Circle can yield 355 units, and is located near the office buildings of Mediapolis, Biopolis and Fusionopolis in one-north. “It is in line with the government’s policy to build homes close to workplaces, and to create self-contained communities.” is Tay of Knight Frank’s Tay.
ERA’s Mak believes the location at Media Circle will appeal to the younger, chic and tech-savvy homebuyers who may benefit from the proximity to these business parks and those who enjoy a vibrant and modernised neighbourhood.”Furthermore, the future development may attract a pool of investors due to its high rentability potential from the white-collar workers in the precinct.”
The white site located at Marina Gardens Crescent can be transformed into a mixed-use project including a 775-unit residential building and 65,000 square feet GFA retail space that will provide amenities for residents, according to the Knight Frank’s Tay. Once completed, the houses in Marina Gardens will have views of the CBD, Gardens by the Bay, Marina Reservoir and sea views “at at the very least until other sites in the vicinity are constructed” Tay adds.
Developers are selling their inventory of residential units for private sale has diminished significantly in the last few years, as per Mak. “This is among the main reasons behind the continuous increase in the prices of private homes.”
The new housing development constructed on sites which were previously sold as part of the 1H2023 GLS program, which was launched to be sold only in the following 1H 2024, they will not have a significant impact on housing prices for the next year, says Mak.
