SINGAPORE – The supply of private homes under the Government Land Sales (GLS) programme for the second half of this year has been raised, in response to land-hungry developers, resilient demand and declining unsold inventory.
The number of homes on the confirmed list has increased by 25.8 per cent to 3,505 units, up from 2,785 units for the first half of the year.
Among the sites announced by the Government on Tuesday (June 7) is the first plum site in Marina Gardens Lane in Marina South precinct, next to Gardens by the Bay. The entire precinct has a potential yield of more than 10,000 units.
Ms Catherine He, Colliers’ head of research in Singapore, noted that the supply of 3,505 units is the biggest since the second half of 2014, when 3,915 units were introduced. This will provide “a much-needed boost” for developers to shore up their land bank, she said.
The sites will likely attract healthy bidding as they are located at upcoming residential estates including Hillview and Lentor, and should see strong demand from upgraders, she added.
In all, there are 14 sites under the GLS programme for the second half of this year – six confirmed list sites and eight reserve list sites. These sites can yield about 7,310 private residential units, 94,750 sq m gross floor area (GFA) of commercial space and 530 hotel rooms.
On the confirmed list, there are five private residential sites, including one executive condominium (EC) site, and one commercial and residential site. These can yield 3,505 private residential units (including 495 EC units) and 14,750 sq m GFA of commercial space.
The reserve list comprises six private residential sites, including two EC sites, one white site and one hotel site in River Valley Road, which can yield an additional 3,805 private residential units (including 1,000 EC units), 80,000 sq m GFA of commercial space and 530 hotel rooms.
The supply on the reserve list will give developers a good selection of sites to initiate for development if there is demand. Sites on the list are launched only upon successful application by a developer or when there is sufficient interest.
The increase is in keeping with the Government’s promise to ramp up the supply of both private and public housing sites to maintain market stability in the wake of the December 2021 cooling measures.
The Marina South site is one of five sites in the area zoned “residential and commercial at first storey”, among other white sites, where a range of uses is allowed, and “is expected to kick-start development in the area”, Ms He said, adding that the move is in line with plans to add vibrancy to the Central Business District.
Located in the 45ha Marina South precinct, which overlooks the Marina Reservoir and the Singapore Strait, the site will comprise a mix of retail, office, hotel and residential uses.
Mr Lee Sze Teck, Huttons Asia’s senior director for research, called it the best site on the list, and said it will offer “a first-mover advantage to developers and buyers”.
But the huge outlay of more than $1 billion may attract only a handful of developers, he added.
First unveiled in the draft master plan 2013, the URA’s plans for Marina South have been refined to include more public spaces and a mix of uses and amenities to serve residential communities.