Increased land supply for private housing for 1H of 2024
The Ministry of National Development (MND) said that the list supply injection confirmed will bring total pipeline supply of housing private including ECs up to around 59.100 units.
There are 41,900 approved units and 17,200 unapproved units.
Market analysts expect developers to continue to reduce their bids with the release of 10 list sites in the first half 2024.
Residential land sites have received an average bid of 3.7 per site since the second half in 2023.
As interest rates rise and the market becomes more uncertain, it is important that developers restrain their bids for GLS-sites.
For the first half, 2024 will see an increase in the land supply of private housing. It includes a site pilot for long-stay serviced apartment in one-north and the first site for private housing in Bayshore Precinct.
All told, the 10 sites that were confirmed and the nine sites that were on the reserve lists of the Government Land Sales Programme (GLS), which was announced on December 6, will produce 8,910 private housing units, 107.750 square meters of commercial floor space (GFA), and 530 hotel room.
The 10 approved list sites – which include an executive condominium (EC) and a third long-stay apartment site – can produce 5,450 residential units, including 710 ECs, 515 long stay serviced apartments and 13,900 sq m gfa of commercial space.
This is an increase of 5.6% from the 5160 residential units of the second half in 2023.
Several prime sites are available for developers who otherwise would have to tap into the collective sale market to get their plots.
Analysts note that the Media Circle in one-north site, which has 515 long-stay serviced flats, is the only confirmed site for full long-stay apartments on the list of confirmed sites for the first six months of 2024.
The second half of 2023 GLS program launched two sites on Upper Thomson Road in Zion Road. They were a mix between residential and long-stay accommodation.
MND said that the release of Bayshore Road’s first private housing site from the reserve list would kickstart the development of Bayshore Estate.
This 60ha new estate will contain 10,000 homes, 3,000 private homes, and 7,000 HDB apartments. It is located on reclaimed land between Upper East Coast Road (UEC) and East Coast Parkway.
The Bayshore Road and River Valley Green Parcel B locations on the reserve list have the “most intrigue” and highest chances of being activated.
Holland Drive is likely to surpass the $1 billion land value mark based on land size and the plot ratio. This will attract bidders in consortiums.
Experts expect demand for Margaret Drive plots and Tampines Street 94 as both are located in popular residential neighbourhoods Queenstown & Tampines.
The Margaret Drive site, (Margaret Ville), sold in 2016 attracted 14 bids. The Tampines site is a future mixed use development adjacent to the Tampines West MRT. The future mall should be well supported by an increasing residential population.
The Bayshore Road Site will be of interest to developers, as the Bayshore Road tender is more than 20 years old, and the Long Island reclamation, along Singapore’s Eastern coast, has piqued their interest.
This will reduce the risk to developers of ABSD.
Due to its location and proximity to a future Bayshore MRT, developers are likely to try to secure a first mover advantage in this precinct.
In the future, there could be a stiff competition in the market with approximately 3,000 new private homes planned in the precinct.
As for the confirmed list, analysts are expecting many bids to be placed on the Jalan Besar Loyang site in Pasir Ris. This is because hybrid private homes in this area are more affordable, and they attract both first-time home buyers and upgraders.
Media Circle is only for serviced apartments that are intended to be rented out long-term. Developers don’t have to complete the project in less than five years, and they can still get a reduction on Additional Buyer Stamp Duty.
Developers will be able to develop 3,460 additional units from nine sites that are on the government’s reserve list if they deem there is enough demand.
Six private residential sites are included in the list, including two ECs sites with 855 apartments and a site at River Valley Green, which could yield 220 serviced long-stay apartment. There is also a commercial property, a site that allows for combining uses and 530 rooms of hotel.
As the last EC launch Sea Horizon, was in 2013, there should be a pent-up need in Pasir Ris.
There should be a strong demand for the sites on Holland Drive and De Souza Avenue which have been moved from the second-half of 2023 to the first-half confirmed list.