The government announced 1H2023 of the Government Land Sales (GLS) program on December 8, with seven sites listed on the Confirmed List and nine sites on the Reserve List. Together the 16 sites will provide 7,715 residential units for private residences and 199,750 square meters (over 2.15 million square feet) and commercial areas, and 515 hotel rooms.
Skywaters Residences showflat location space translates from 678,000 sq ft up to 720,000 sq ft based on NLA, more than the existing 680,000 sq ft of Axa Tower.
“The increase in GLS housing supply, which is which is the most housing units listed on the Confirmed List since the 1st of January 2014 is in line with market demands since private demand for housing has outpaced unsold inventory in the last one year.” claims Ismail Gafoor PropNex’s CEO. PropNex.
The seven sites that are on the Confirmed List could be transformed into 4,090 housing units. This is just 16.7% higher than the amount of units made available in the 2H2022 GLS program according to Nicholas Mak, head of the research and consulting department at ERA Singapore. In the GLS programme for 1H2022 as well as 2H2022, the number of housing units grew to 39.3% and 25.9% during the preceding time Mak explains.
“Although there is an increase in its supply of land to build private homes as part of the GLS program 1H2023 but the rate of growth is slowingdown,” Mak says. Mak. “A possibility behind the slower rate of growth in housing supply potential is that the government seeks to find a way of expanding the supply of private housing but also being cognizant of the possible economic slowdown in 2023.”
“Based on the last five years’ records the average volume of transactions is between 10,000-11,000 per year,” says Steven Tan the Chief Executive Officer of OrangeTee & Tie. “The rise in supply for 1H2023 to around 4000 residential units is sufficient supply to meet the demand, after taking into consideration supply from the market that is en bloc. This has a positive impact on the cost of homes.”
The 4,090 units listed on the Confirmed List will expand the pipeline of housing for private use (including ECs) to about 65,000 units. Of these, approximately 33,600 units will be built within the next two years, much more that the 11500 homes built in 2021. “These homes that are completed will allow owners to meet rental demand in the short future,” says URA.
Two of the sites that are listed on the Confirmed List are white sites located at Marina Gardens Crescent and Jurong Lake District and the other two sites are residential sites located at Champions Way in Woodlands and Media Circle in one-north. Three remaining residential sites that are located in Jalan Tembusu Tampines Street 62 (the executive condo or EC site located at Parcel B) and Lentor Central — were carried over from the Reserve List until The 1H2023 Confirmed List.
However, despite all the property cooling measures introduced in December 2021, and by close of September “housing demand continued to exceed supply as Singapore adjusted to the pandemic period,” notes Leonard Tay, head of research at Knight Frank Singapore. As it was true that the URA Private Residential Rental Index was up 20.8% in the first nine months of 2022 however, The Price Index gained 8.2% in the same time period according to Tay.
Tay anticipates that the residential site located at Champions Way to see strong interest from developers. The site could produce 345 residential units, and is situated near the Woodlands South MRT station on the Thomson-East Coast Line. The site is situated in Woodlands Regional Centre. Woodlands Regional Centre, new facilities within the region include the forthcoming integrated healthcare complex that will include the hospital for acute treatment, a community nursing home and hospital due to be opened gradually over the next two years.
The last residential private site in Woodlands that was sold under the GLS program was more than a decade earlier (in the month of June in 2011). This was the site on Rosewood Drive, off Woodlands Avenue 2 which was later transformed to form the 689 unit Parc Rosewood, which is owned by Fragrance Group and Aspial Group.
Another residential suburban site that could be a draw for developers who are interested in the 1H2023 GLS program could be the EC site located at Tampines Street 62 (Parcel B). The 2.8 ha area could be converted into 700 units of EC project. The parcel of land is close to Tenet which is a 618-unit EC created jointly through Qingjian Realty, Santarli Realty and Heeton Holdings. It was launched on the 3rd of December. Tenet was able to sell the sale of 447 units (72.3%) sold at an average price of $1,360 per square foot. The average price is new record for ECs.
It is close to the planned Tampines North MRT station on the Cross Island Line, the EC land parcel could attract bids of between $474 million and $500 million in the event of the station’s launch, which is between $630 and $664 per square foot per person, according to Mak.
“The GLS site at Media Circle is among the most attractive sites within the 1H2023 Confirmed Listing,” says the ERA’s Mak. The site is situated in a 10 minute walk from One-north MRT station as well as only five minutes from the Ayer Rajah Expressway (AYE) which is one the main expressways that run through Singapore. “In addition to that, it is also a site can be surrounded with numerous restaurants, gyms, fitness centers and other facilities, that are sure to attract young couples and families,” he adds.
The site located at Media Circle can yield 355 units, and is located near the office buildings of Mediapolis, Biopolis and Fusionopolis in one-north. “It adheres to the government’s ethos to build homes close to employment centers, thereby creating self-contained communities.” is Tay of Knight Frank’s Tay.
ERA’s Mak believes the location at Media Circle will appeal to the younger, chic and tech-savvy homebuyers who may benefit from the proximity to these business parks and those who enjoy a vibrant and modernised neighbourhood.”Furthermore, the future development may attract a pool of investors due to its high rentability potential from the white-collar workers in the precinct.”
The white site located at Marina Gardens Crescent can be developed into a mixed-use property including a 775-unit residential building and 65,000 square feet GFA retail platform that will provide amenities for residents, according to the Knight Frank’s Tay. After completion, the homes in Marina Gardens will have views of the CBD, Gardens by the Bay, Marina Reservoir and sea views “at at the very least until other sites within the region are constructed” Tay says.
Developers have an inventory of un-sold private residences has diminished significantly in the last few years, as per Mak. “This is among the reasons for the constant increase in the prices of private homes.”
In the case of new residence development built on sites that were sold under the 1H2023 GLS program, which was launched to be sold only in the following 1H 2024, it will have no impact on home prices for the next year, says Mak.