H2 GLS prog; more private housing supply, 1st sale site in Marina South
H2 GLS prog; more private housing supply, 1st sale site in Marina South. Despite strong demand and declining inventory, the GLS (government land sales) program will continue to have a larger supply of private housing in the second half of 2022.
According to the Ministry of National Development (MND), the program includes six confirmed list sites and eight reserve list sites, which are expected to yield approximately 7,310 private residential units, 94,750 square metres (sq m) of commercial space, and 530 hotel rooms (Jun 7).
MND is increasing the supply of private housing on the confirmed list to 3,505 units in H2, up 25.9 percent from 2,785 units in H1. This is to ensure adequate supply and market stability in the face of consistently high demand for private housing.
MND also anticipates that the supply on the reserve list will provide developers with a good selection of sites to begin development if demand is determined. Sites on the reserve list are only launched after a successful developer application or when there is sufficient market interest.
H2 GLS prog. There are 5 private residential sites confirmed on the list, including 1 executive condominium (EC) site and 1 commercial and residential site. This would result in approximately 3,505 private residential units (including 495 EC units) and 14,750 square meters of GFA commercial space.
On River Valley Road, the reserve list includes six private residential sites, including two EC sites, one white site, and one hotel site, which can yield an additional 3,805 private residential units (including 1,000 EC units), 80,000 square meters of commercial space, and 530 hotel rooms.
The supply of 3,805 housing units on the reserve list for the next half is slightly higher than the supply of 3,715 units in the current half.
Ong Teck Hui, JLL’s senior director of research and consultancy, commented on the increased supply of private housing on the confirmed list, saying, “To address the low inventory of unsold private housing, the URA has increased land supply in the H2 2022 GLS programme… However, it is a measured rise, possibly reflecting macroeconomic uncertainties that may affect the market.”
According to Nicholas Mak, head of research and consultancy at ERA Realty Network, the increase in supply from the confirmed list may not be enough to cool the residential property market. “With a limited supply of unsold private housing units, demand for development sites remains high.” In order to moderate rising land prices, the government should have provided 8 to 10 sites that can generate private housing (including EC) units on the H2 2022 confirmed list, rather than just 6, in order to moderate rising property launch prices.”
Catherine He, Colliers’ head of research for Singapore, expects “a healthy level of bidding” on the confirmed list of residential sites, adding that sites in upcoming residential estates such as Hillview Rise and Lentor Gardens should also see strong demand from upgraders.
“As supply from GLS sites gradually increases, the increase in residential units introduced will help developers shore up their land inventory,” she said.
A residential site on Marina Gardens Lane, located in the Marina South precinct next to Gardens by the Bay, is a new site introduced in the half-year period among the confirmed-list sites announced.
The Marina South precinct, which was unveiled by the Urban Redevelopment Authority in the Draft Master Plan 2013, will be a self-sufficient neighborhood with a mix of retail, office, hotel, and residential uses; it is also intended to be a sustainable, car-lite precinct.
MND anticipates that the opening of the first sale site on Marina Gardens Lane will kick-start the development of the Marina South neighborhood.
Analysts anticipate that the Marina Gardens Lane site will garner attention, with Huttons Asia senior director of research Lee Sze Teck describing it as the “best site” on the confirmed list.
“It gives both developers and buyers a first-mover advantage,” he said, predicting that the massive investment of more than S$1 billion will only attract a few developers.
Meanwhile, the H2 reserve list includes the white mixed-use development site on Woodlands Avenue 2 and the hotel site from the H1 reserve list.
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