River Valley and Queenstown among the most popular sites in H1 2024

In the first six months of 2024, 10 new sites are available for the Government Land Sales Programme (GLS). There are eight sites on the list of confirmed sites, and two more on the list of reserve sites.

The list confirmed by analysts includes a parcel located in the central area of River Valley; another along Margaret Drive near Queenstown and an Executive Condo (EC) in Jalan Loyang Besar.

The River Valley Green plot (Parcel A), which is 0.93 ha in size, can produce around 380 houses. It is located near the Orchard shopping belt and has direct MRT access. It’s expected to be launched in March 2019.

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Analysts anticipate a strong interest for the site given its central location.

CanningHill Piers, Riviere, and Irwell Hill Residences are some of the previous launches in this area that have attracted a lot of interest.

CanningHill Piers for example, sold to 77 percent of its 696 units at an average cost of S$3,000 a square foot (psf), on its launch weekend, in November 2021.

The River Valley site is more attractive to developers than the nearby Zion Road, (Parcel A), which had put out for tender Monday. He said that not only is the River Valley site smaller, translating into a lower quantifiable price, but developers also do not have to include long-stay apartments. This reduces their upfront capital expenses and risks.

Still, River Valley has an irregular, long shape. This will likely require more creativity in project development and design than a site with a more regular form.

The parcel of land along Margaret Drive has a total area of 0.95ha and can produce 460 homes. It is only minutes from Queenstown MRT and has at least 500 square meters (sqm) of childcare spaces. The site should be ready by May 2024.

If this parcel is sold, it will be first land sales in the area since 2017.

In May 2017, 13 bidders competed for the Stirling Road property, which is where 99-year-leasehold Stirling Residences are now situated. Hong Kong’s Logan Property Holdings as well as China’s Nanshan Group won the bid with of over S$1 Billion. The winning bid was S$1,050.70/sqft per plot ratio. At the time, this was a record-breaking price for Queenstown.

A new condominium development located in Queenstown’s popular housing area, which has some of the highest Housing & Development Board resale rates, can tap into upgraders demand. Through this, buyers will use the proceeds of resale fees to transition into the private market.

This 2,84 ha site will produce approximately 710 housing units. Pasir Ris MRT interchange and shopping centres like Pasir Ris Mall or White Sands can be reached within walking distance.

Observers expect this site to be among the most competitive when it goes up for tenders in May 2024. This is because it’s the only EC on the list and developers will be closely watching this segment, due to the compelling value proposition.”

Competition was stiff for the last EC parcel (Parcel B) launched for sale on Tampines Street 62. The October tender attracted nine bidders and the highest bid was S$543.28million, which is a record rate for land of S$721psfppr.

There was also added that Pasir Ris should have a strong pent up demand, as the last EC launch there took place in 2013, at the site of 99-year leasehold Sea Horizon.

ECs are currently the most affordable type of hybrid private home, and they appeal to a large number of people, especially first-time and upgrade buyers.

List supply confirmed for the H1-2024 programme includes five additional residential sites. These include a mixed-use project in Tampines Street 94 as well as one in Media Circle Buona Vista that is slated for Long-stay Serviced Apartments. These apartments are considered to be a good size, and they are expected to attract moderate demand.

The Tampines Street 94 parcel is 2.35 hectares in size, with a maximum retail area of 10,500 square meters and a minimum childcare space of 650 square metres. It is estimated to have 585 units and will be ready for launch in 2024.

There is a growing number of houses in the area, and it is important to note that Tampines is likely the only major mall located within 800 metres.

Developers who are looking for a retail site in the heartland could find this site attractive. There is also a pent up housing demand on this plot, as there has been no GLS site nearby for 20 years since the Bay Water residential area along Bedok Reservoir Road won in December 2000.”

The list also includes a plot at Dairy Farm Walk that can house 530 houses, and one in Tengah garden Avenue with 860.

The H1 2024 GLS Programme has added two new sites to its reserve list. A plot in River Valley Green, which can accommodate 575 homes and another in Bayshore Road. Sites are only put on sale if the government accepts the minimum price that a developer has indicated in their application.

Market watchers are more inclined to believe that Bayshore Road is the parcel most likely for a bid.

Bayshore is the first land parcel to be sold for private residential housing in this area. The site’s proximity to East Coast Park, the Bayshore MRT station and East Coast Park will likely attract a lot of interest from buyers and developers.

In order to secure a first mover advantage, developers will be seeking to establish a presence in this Bayshore precinct. With about 3,000 private residences expected to be built, the future market competition may be intense.

The Bayshore Road project could also attract developers who are aware of its potential to be sold for a higher price, due to the development of Long Island reclamation, and development off of Singapore’s eastern coast.

The GLS Programme for the First Half of 2024, as a whole, is expected to increase the number of private homes and executive condos from H2 of 2023 by 5.6 percent to 5,450. One hundred and thirty-five units were carried forward from H2 2023 GLS Programme, while 4,415 came from new sites.

This is the highest number of confirmed supplies since H2 2013.

The current supply continues to provide ample private housing but does not over saturate the market. This is because of the imminent projects.

This will ensure that bids are regulated and land prices are kept in check. It also shows home buyers how committed the government is to keeping prices down by ensuring a sufficient amount of supply.

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