H2 GLS prog; more private housing supply, 1st sale site in Marina South

by Albert02

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.

THE GLS (government land sales) program will continue to have a larger supply of private housing in the second half of 2022, despite strong demand and declining inventory. 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, according to the Ministry of National Development (MND) on Tuesday (Jun 7).

To ensure adequate supply and market stability in the face of consistently high demand for private housing, 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.

River Valley Road has six private residential sites on the reserve list, 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 current half’s supply of 3,715 units.

JLL’s senior director of research and consultancy, Ong Teck Hui, commented on the increase in private housing supply on the confirmed list, saying, “The URA recognizes the low inventory of unsold private housing and has increased land supply in the H2 2022 GLS programme to address the shortage… It is, however, a measured increase, possibly reflecting macroeconomic uncertainties that may affect the market.”

According to Nicholas Mak, ERA Realty Network’s head of research and consultancy, 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 on the H2 2022 confirmed list that can generate private housing (including EC) units, rather than just 6, to moderate rising property launch prices.”

Colliers’ head of research for Singapore, Catherine He, expects the confirmed list of residential sites to attract “a healthy level of bidding,” adding that sites in upcoming residential estates, such as Hillview Rise and Lentor Gardens, should also see strong demand from upgraders.

H2 GLS prog. “As supply from GLS sites gradually increases, the increase in residential units introduced will help to provide a much-needed boost for developers to shore up their land inventory,” she said.

Among the confirmed-list sites announced, 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.

The Marina South precinct, which the Urban Redevelopment Authority announced 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 first sale site on Marina Gardens Lane will kick-start the Marina South neighborhood’s development.

Analysts expect the Marina Gardens Lane site to attract interest, with Huttons Asia senior director of research Lee Sze Teck describing it as the “best site” on the confirmed list.

“It provides a first-mover advantage to both developers and buyers,” he said, predicting that the massive investment of more than S$1 billion will only attract a few developers.

Meanwhile, the white mixed-use development site on Woodlands Avenue 2 and the hotel site on the H2 reserve list were carried over from the H1 reserve list.

Click the image to read the full details of report.
Source: https://www.businesstimes.com.sg/real-estate/h2-government-land-sales-programme-to-have-more-private-housing-supply-first-sale-site

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