Two reserved GLS sites had been released for tender
Most analysts do not believe the two sites – that can yield up to 1,035 new private homes – and the four other sites in the reserve list will be sold anytime soon.
Holland Drive, which is located near the Holland Village station of the MRT and has commercial amenities in Holland Village will probably command a land price that exceeds $1 billion due to its desirable location.
The sale will not take place until the property is ready. Experts think that the high potential bid of more than $1 billion dollars for the Holland Drive Site, with its 600,000 square feet of gross floor space, will deter all bidders but consortiums.
Reserve list sites for GLS in the second half of 2020 include two Government Land Sales (GLS), located in Holland Drive in Upper Bukit Timah and De Souza Avenue.
Many analysts believe there is little chance that developers will bite any time soon.
Sites on the Reserve List are available for applications and will only be put out to tender when a developer indicates a price minimum that is acceptable by the government.
The Jalan Jurong-Kechil site is where the Verdale, a 258 unit development, now stands. This plot, awarded in September 2018, was valued at $215 million. That’s equivalent to a land price of $1,002 per sq ft ppr.
The De Souza site may be sold, but it is unlikely due to a limited new supply and the possibility that the amount will fall below $500 million.
If the auction is triggered, a site can attract a maximum bid between $1200 and $1300 psf per person, which translates into between $397.74m and $430.88m.a
As cooling measures reduce foreign demand, unit mix, sizes and quantities will be more geared towards the local market.
Analysts also don’t expect the De Souza Avenue project, which offers 355 new homes and is located far from an MRT station, to be completed soon.
Analysts noted that there were better-located projects near by, including the Bukittimah GLS site, near Beauty World MRT Station, and Hillhaven, near Hillview MRT Station.
Many believe there is little chance of four sites going to tender in the coming six months. This is due to the large number of confirmed sites and the absence of attractive suburban sites listed on the Reserve List.
Recent GLS tenders, however, indicate that developers remain very eager to acquire land. This is evidenced by the high-spirited bids received.
Other than the Holland Drive and De Souza Avenue site, the two other new sites for the second half 2023 are a executive condo parcel on Tampines Street 95 with 560 homes and Zion Road Parcel B, a 605 unit plot covering 0.92ha.