Analysts said property developers will soon have ample supply of prime land going forward, after the Urban Redevelopment Authority said it can build over 10,000 residential units near MRT stations, in the next 10 years and beyond.
The URA announced this in its Concept Plan 2011 – an urban planning exercise done every 10 years.
With their close proximity to public transport, analysts said that these land parcels will be in hot demand and will generate high bids.
Potential home owners can expect high-rise living in established neighbourhoods in the years ahead.
The URA said housing of more than 30 storeys will be built near public transport, like MRT stations, in matured estates.
Analysts said these sites should be well sought by developers.
“Some of these land parcels that are located near the mrt station could possibly achieve record prices when they are offered for sale by government land sale tenders. I believe the government would pace out the sale of these land parcels, so that home buyers would have a wider choice over a longer period of time,” said Mr Nicholas Mak, executive director of research at SLP International.
Analysts said future land prices near MRT stations depend on economic activity and demand.
But with a projected 6.5 million population and a robust economy in the decades ahead, they added that land prices may remain firm.
In February, a 129,137 square feet land site near Bishan MRT station attracted a top bid of S$550.1 million, or S$869 per square foot and a record 19 bids despite the introduction of more cooling measures in January.
The URA said it plans to move commercial activity out of the city centre in order to ease traffic flows.
Analysts said more land in the central region could be freed up for more homes.
“If there is some commercial property that is able to enbloc and move and change of use to residential, I think that comes as great news to developers,” said Mr Jeffrey Hong, CEO of GPS Alliance.
Some of URA’s future urban planning will involve the needs of an ageing population.
Analysts suggested that expiring leases in older properties be topped up, to accommodate their senior residents.
Source : Channel NewsAsia – 14 Apr 2011