The Singapore government has announced 14 sites under the Government Land Sales (GLS) programme for the second half of the year, including six sites on the Confirmed List and eight on the Reserve List.
The Confirmed List sites include four private residential sites, one Executive Condominium (EC) site, and one mixed-use (commercial and residential) site. Three of these sites—Bukit Timah Link, Hillview Rise, and Lentor Gardens—were moved from the Reserve List to the Confirmed List. The remaining three—Marina Gardens Lane, Tengah Plantation Loop, and Tampines Avenue 11—are new sites.
Overall, these sites can provide approximately 3,505 residential units, including 495 EC units.
This programme represents a 25.9% increase in supply from the Confirmed List in the first half of the year, which had 2,785 units. Leo Kwek, a senior property consultant at AnjiaSG, noted that this is also the highest supply of units on the Confirmed List since the first half of 2014, when the GLS programme offered 3,915 units. “The increase in the number of units will provide a much-needed boost for developers to shore up their land banks,” he commented.
Given the healthy new home sales, strong employment levels, and low unsold housing inventory, Kwek believes that these sites are likely to attract a good number of bids.
Meanwhile, the eight sites on the Reserve List include four private residential sites, two EC sites, one white site, and one hotel site. If all these sites are launched for sale, they could provide another 3,805 private residential units, including 1,000 EC units, 861,113 sq ft of commercial space, and 530 hotel rooms.
First Sale Site in Marina South
One of the most noteworthy sites on the Confirmed List for the second half of 2022 is the Marina Gardens Lane site. This 1.23-hectare plot is the first GLS site in the Marina South precinct, located in the Core Central Region (CCR). The site is expected to be launched for sale in December and can yield about 795 residential units.
Kwek believes the site could see stiff competition when it is launched for sale, given its central waterfront location. “When completed, [the development] will enjoy panoramic views of the CBD, Gardens by the Bay, Marina Reservoir, and the sea,” he noted.
Mr. Kwek also pointed out that the site offers a first-mover advantage for developers and buyers in Marina South. He added that the site will also benefit greatly from its direct connection to the upcoming Marina South MRT station on the Thomson-East Coast Line.
Nevertheless, he cautioned that the substantial outlay required for the site, estimated to be around S$1 billion, might attract only a small number of developers. In a tender for a white site at Marina View last September, IOI Properties Group was the sole bidder for the 0.78-hectare plot. The company’s bid of S$1.508 billion translated to a land rate of S$1,379 psf ppr.
Mega Tampines Site Offers Suburban Retail Opportunities
Another prominent site on the Confirmed List is the mixed-use (commercial and residential) site at Tampines Avenue 11. At 5.07 hectares, it is the largest site on the list and can yield about 1,190 residential units and 150,695 sq ft of commercial space. The site is expected to be launched for sale in December.
Leo Kwek, a senior local real estate agent, said the site is expected to boost the development of Tampines North and address the current lack of amenities in the area.
However, given the site’s size, the cost is also expected to reach S$1 billion, which could deter potential bidders, he warned. Previously, a GLS site at Dunman Road, which recently closed its tender, crossed the S$1 billion mark and attracted only two bidders.
Nevertheless, Kwek noted that the site’s attractiveness might be enhanced by the significant commercial potential from the large catchment of residents, given the substantial number of HDB flats in the vicinity.
Furthermore, he expects the residential component to benefit from strong upgrader demand. “In recent years, a considerable number of HDB flats near the site have reached their Minimum Occupation Period (MOP). These families will be looking to upgrade and will be searching for new condos in the area,” he explained.
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Bukit Timah Link, Other Sites to Attract Stronger Demand
Kwek commented that the Bukit Timah Link site on the Confirmed List is expected to attract strong interest, given its “palatable size and strong locational attributes for developers.”
This 0.46-hectare plot can yield about 160 units and is scheduled for tender in August. The site is within walking distance of the Beauty World MRT station on the Downtown Line and is adjacent to The Linq@Beauty World, developed by BBR Holdings. This small, 120-unit freehold mixed-use project was launched in 2020 and is now fully sold out, which Mr. Kwek highlighted as a good omen for the Bukit Timah Link site.
Another smaller site on the Confirmed List, also launching in August, is the 1.03-hectare Hillview Rise site, which can accommodate 335 residential units. The site is located in the established and popular Hillview area, a short walk from the Hillview MRT station. Kwek noted that with an expected land price of under S$300 million and a developer-friendly size, it should draw strong interest from many developers.
The Lentor Gardens site, which can yield 530 units and is scheduled for launch in October, is the fifth site to be launched in the Lentor area. Another site, Lentor Central, has also been added to the Reserve List. Kwek stated that these six new residential developments could add a total of about 3,000 new homes upon completion. “The upcoming large supply could help meet the pent-up demand for this tranquil neighborhood,” he commented.
Meanwhile, the Executive Condominium site at Tengah Plantation Loop, offering 495 units, is the second EC site in the Tengah area, following the fiercely contested Tengah Garden Walk site. The Tengah Garden Walk site attracted seven bidders in its tender last May before being awarded to a joint venture between City Developments Ltd (CDL) and MCL Land for a record S$603 psf ppr.
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