More government land sales slated for second half of 2011

The Ministry of National Development (MND) said it will inject about 43 sites into the government land sales programme (GLS) for the second half of this year.

Out of the 43 sites, 19 sites will be on the confirmed list, while 24 sites will be on the reserve list.

To address the strong demand from home buyers and developers, MND said 17 out of the 19 sites on the confirmed list will be for residential housing and this will yield 8,100 residential units.

Including the 13 residential sites on the reserve list, the GLS programme will yield a total of 14,195 residential units, inclusive of 2,300 executive condominium units.

This is slightly less than the first half of this year’s potential yield of 14,310 units.

The programme will also yield about 268,000 square metres of commercial space and 3,700 hotel rooms.

Minister for National Development Khaw Boon Wan acknowledged that there are concerns of oversupply of residential units going forward.

“A market correction or any crash is not a given. If all goes well, the economy will continue to grow and those who bought properties here will enjoy good returns when their units are completed in the next few years,” said Mr Khaw in his blog.

He advised property investors to take note of external economic risks which may affect property demand, such as the Middle East crisis and the European debt crisis.

Looming interest rate hikes may also affect demand, he said in his blog.

Source : Channel NewsAsia – 9 Jun 2011