Cautious bidding expected for latest GLS sites

Two 99-year leasehold residential sites released under the Government Land Sales (GLS) Programme this month are expected to receive healthy interest from developers, with seven to nine bids due to their strategic locations, said Knight Frank Singapore.

Located at Commonwealth Avenue and New Upper Changi Road/Bedok South Avenue 3 (Parcel B), the sites are just next to Queenstown and Tanah Merah MRT stations respectively.

However, developers will likely be “more cautious” on the bids submitted as there are alternative sites available under the 1H2013 GLS Programme.

“If Commonwealth Avenue site is sold, the Queenstown/Redhill locale would see a total of five GLS residential sites sold. With impending large supply of private homes in this area, land bids are likely to be less competitive,” said Alice Tan, Senior Manager Research at Knight Frank.

Meanwhile, the sale of the New Upper Changi Road site (pictured) would mean that four GLS housing sites would be located within that area which could generate 2,150 homes.

“This is on top of the 190 units unsold at eCO as at Nov 2012. Ample supply could lead to more measured land bids from developers as they adopt a cautious stance for land sites within the same locale,” Tan added.

Both sites are expected to be developed into condominiums or flats and could yield 1,300 homes.

Source : PropertyGuru – 19 Dec 2012

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