30 sites for private homes

After Aug 30 moves to curb demand, Govt now focusing on increasing supply: Analysts

The Government is releasing more land for private residential development in a move that analysts say is targeted at containing froth in the property market.

The Ministry of National Development yesterday announced it would place 17 sites on the so-called “Confirmed List” of the Government Land Sales (GLS) programme in the first half of next year.

The MND said the sites, which comprise 16 residential sites, including three executive condominium (EC) sites, and one mixed commercial-and-residential location, could yield about 8,100 residential units and would ensure a strong supply of private housing to meet demand.

Another 13 sites will join the “Reserve List”, comprising 12 residential sites including one EC site, and one mixed commercial-and-residential location. Together, they could yield about 6,200 residential units.

In total, the GLS programme for the first half of next year will have 30 sites for residential development, which can generate about 14,300 private residential units. This is higher than the 13,900 private residential units made available in the GLS programme for the second half of this year, the MND said. The increase is due mainly to an increase of 400 units in the Reserve List supply.

Of the 30 sites, 17 are new while the remaining 13 sites are carried over from this year.

Reluctant to take further measures to curb property demand too close on the heels of its Aug 30 measures to cool speculation, the Government is focusing its efforts on replenishing the supply pipeline of new homes, analysts say.

The number of unsold units rose to 33,771 in the third quarter from 32,630 units in the second quarter.

“This is equivalent to about three years of supply, based on an average take-up of about 11,300 units per year over the last three years,” the Monetary Authority of Singapore noted yesterday.

“The placement of so many residential sites on the Confirmed List, as well as the continued provision of residential sites on the Reserve List, show the Government’s intention to ensure that supply keeps up with demand, even as the economy strengthens,” said Mr Li Hiaw Ho, executive director of CBRE Research.

“The sites in close proximity to MRT stations will prove to be popular and are likely to be hotly contested, as are the ones that are situated closer to the city.”

The Government is also releasing more commercial land on the Confirmed List to meet demand for office space. It is releasing two commercial sites: One in Robinson Road, to cater to demand in the central business district, and the other in Paya Lebar Road, which it hopes will facilitate the early development of Paya Lebar Central into an attractive commercial hub to complement the Central Business District.

In addition, a commercial site in Sims Avenue and Tanjong Katong Road will be added to the Reserve List to provide for the growth of Paya Lebar Central into a sizeable and sustainable commercial node, the MND said.

Analysts expect the government to release more land for office use in the Marina Bay area if appetite remains strong after the Grade A office complexes that are currently under construction are taken up.

Two new hotel sites will also be added to the Reserve List.

The first is in Race Course Road, near Little India. The second hotel site is at Kallang Riverside, in an area that has been identified as a new waterfront lifestyle precinct near the coming Sports Hub, which is scheduled to be completed in 2014.

Source : Today – 26 Nov 2010

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