The Government released on Thursday (Dec 3) the Government Land Sales (GLS) programme for the first half of 2021, with sites capable of yielding about 7,045 private residential units, 101,200 sq m of gross floor area of commercial space and 1,070 hotel rooms available.
Four sites in this GLS programme are new: Two parcels at Slim Barracks Rise in one-north are on the Confirmed List, while one at Jalan Tembusu, off Mountbatten Road, and another at Tampines Street 62 are on the Reserve List.
The other nine sites – made up of five residential sites, three mixed-use White sites and one hotel site – have been carried over from the Reserve List in the second half of this year.
Planned and announced every six months, GLS programmes release state land for private development.
This GLS programme comprises a total of 13 sites, of which four are on the Confirmed List and nine are on the Reserve List.
Land on the Confirmed List is launched for sale at pre-determined dates, with most land parcels sold through tenders.
Land on the Reserve List, meanwhile, is not released for tender immediately, but is made available for application. A Reserve List site is put up for tender when a developer indicates a minimum price which is accepted by the government.
In a media release, the Ministry of National Development (MND), highlighted the impact of the COVID-19 pandemic on this GLS programme.
“The land supply from the 1H2021 GLS Programme has been carefully calibrated to take into account the COVID-19 and macroeconomic situation,” the ministry said.
“Given the continued uncertainties in economic and labour market conditions, the Government has decided to maintain a moderate supply of private residential units on the Confirmed List and will not introduce any new sites for predominantly commercial or hotel use in the 1H2021 GLS Programme.
“Nonetheless, there is a good selection of sites with additional supply in the Reserve List that developers can initiate for development if they assess that there is demand.”
Mr Desmond Sim, CBRE’s head of research for Southeast Asia, said this GLS programme has the potential to excite developers, amid positive signs for the property market.
“With healthy demand from the new sale and resale market, coupled with the declining number of unsold units – 28,727 units in Q3 2020, down from 29,876 units in the previous quarter – CBRE Research believes that these sites are likely to attract a healthy level of bidding activity,” he said, citing previous tenders at Tanah Merah Kechil Link and Yishun Ave 9.
The Slim Barracks Rise sites will be launched for tender in June while the other two sites on the Confirmed List – an additional parcel on Tampines Street 62 and land on Lentor Central – will be launched in April.
The two sites at Slim Barracks Rise, in the one-north area, caught the attention of Mr Ong Teck Hui, senior director of research and consultancy at JLL.
“Housing demand for the sites might be generated by the growing working population in the vicinity. Parcel A can generate an estimated 265 units and Parcel B can yield some 140 units,” he said.
“Both sites are relatively small and could attract many bidders due to their lower total development costs which reduce risk.”
The Reserve List sites at Jalan Tembusu and Tampines Street 62 will be available from May while the other sites on the list – including a White site on Marina View and a hotel site on River Valley Road – are currently available.
All three sites on the Confirmed List from the GLS programme for the second half of 2020 have been launched for tender. Tenders for the sites – on Ang Mo Kio Avenue 1, Northumberland Road and Tengah Garden Walk – will close in April and May next year.
The Tampines Street 62 parcel on the Confirmed List for this GLS programme as well as the land at Lentor Central were previously on the Reserve List.
Both Tampines parcels are earmarked for executive condominiums.
“The Government will continue to monitor economic and property market conditions closely and adjust the supply of future GLS Programmes, as necessary,” MND said.
“The private housing supply in the 1H2021 GLS Programme, together with the supply of units already in the pipeline, will sufficiently cater to the housing needs of the population when completed in about four to five years’ time.”
Source: CNA – 3 Dec 2020