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First Half 2021 Government Land Sales Programme Details Released

Image credit: Google Map

First Half 2021 Government Land Sales Programme can yield about 7,045 private residential units, 101,200 sqm gross floor area (GFA) of commercial space and 1,070 hotel rooms

First Half 2021 Government Land Sales Programme
Image credit: Google Map

The Government on December 3rd, announced the Government Land Sales (GLS) Programme for the first half of 2021 (1H2021), which comprises four Confirmed List sites and nine Reserve List sites. These sites can yield about 7,045 private residential units, 101,200 sqm gross floor area (GFA) of commercial space and 1,070 hotel rooms.

The land supply from the 1H2021 GLS Programme has been carefully calibrated to take into account the COVID-19 and macroeconomic situation. Given the continued uncertainties in economic and labour market conditions, the Government has decided to maintain a moderate supply of private residential units on the Confirmed List and will not introduce any new sites for predominantly commercial or hotel use in the 1H2021 GLS Programme.

Nonetheless, there is a good selection of sites with additional supply in the Reserve List that developers can initiate for development if they assess that there is demand. The Confirmed List comprises four private residential sites [including one Executive Condominium (EC) site] which can yield about 1,605 private residential units (including 590 EC units) and 9,200 sqm GFA of commercial space.

The Reserve List comprises five private residential sites (including one EC site), three White sites and one hotel site. These sites can yield about 5,440 private residential units (including 700 EC units), 92,000 sqm GFA of commercial space and 1,070 hotel rooms.

After releasing details of the First Half 2021 Government Land Sales Programme, the Government said it will continue to monitor economic and property market conditions closely and adjust the supply of future GLS Programmes, as necessary.

Supply of Private Housing for First Half 2021 Government Land Sales Programme

The private housing supply in the 1H2021 GLS Programme, together with the supply of units already in the pipeline, will sufficiently cater to the housing needs of the population when completed in about four to five years’ time. The supply on the Reserve List also gives developers a good selection of sites to initiate for development.

Supply of Commercial Space for First Half 2021 Government Land Sales Programme

The White site at Woodlands Avenue 2 for a mixed-use development will be carried over from the 2H2020 Reserve List to the 1H2021 Reserve List. This site will provide opportunity for developers to initiate the development of more office and retail space if there is demand.

Supply of Hotel Rooms for First Half 2021 Government Land Sales Programme

The 1H2021 Reserve List includes two sites at Marina View and River Valley Road, which are carried over from the 2H2020 Reserve List. These sites will provide opportunities for developers to initiate additional supply of hotel rooms if there is demand.

Commenting on the First Half 2021 Government Land Sales Programme Tricia Song, Director and Head of Research for Singapore at Colliers International, said: “Balancing the disruptions from COVID-19 and the healthy developer sales in the past six months which had brought down the unsold inventory of private housing units, the government has stepped up on issuing more new residential land supply but has kept the commercial and hotel sites the same for the first half of 2021 (H1 2021).”

“While the residential supply on the Confirmed List still remains one of the lowest in the last five years, we think this approach is prudent and appropriate,” she added.

“In addition to the two new sites, two sites in the Confirmed List are carried over from the H2 2020 Reserve List – Lentor Central and an EC site at Tampines Street 62 Parcel A. This brings the Confirmed List to four sites, all residential, up from three sites in H2 2020.

The number of dwelling units – 1,605 units, on the Confirmed List is 15.5% more than the 1,390 units in the H2 2020 GLS, which was the lowest since H2 2009 GLS (which had zero sites on the confirmed list). Nonetheless, the residential supply on the Confirmed List in H1 2021 remains one of the lowest in the last five years.

Among the Confirmed List sites, we believe the new Slim Barracks Parcels A and B are the most attractive, given their proximity to the Buona Vista MRT Interchange station, in the one-north business park enclave, and the relatively palatable size (265 and 140 units respectively).

The government maintained the same number of residential sites on the Reserve List at five sites, with the total number of dwelling units at 5,440, just 2.6% above the 5,300 in H2 2020. The Reserve List contains sites developers can initiate for development if they assess that there is demand. Besides the two new residential sites – Jalan Tembusu and Tampines St 62 Parcel B (EC) – the remaining seven sites on the upcoming Reserve List were candidates carried over from H2 2020’s Reserve List. These include three white sites – Kampong Bugis, Marina View and Woodlands Avenue 2, one hotel site at River Valley, and three residential sites at Dairy Farm Walk, Dunman Road and Hillview Rise.

Between the two new sites on the Reserve List, we find the Jalan Tembusu site more attractive, as it is in the popular East Coast enclave, which has not seen a government land sale since 2001. It is also about 700 meters from the upcoming Tanjong Katong MRT station and near primary schools, secondary schools and the Canadian International School. However, it is a relatively large site which can yield 640 residential units, and may not be triggered in the near term.

All in, the Reserve List can offer a further 5,440 residential units, 1,070 hotel rooms, and 92,000 sq m of commercial space.”

Written by Ravi Chandran

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