Private housing units under Singapore’s GLS programme up 26% to 3,505 in 2H2022
The sites will also yield 14,750 sqm gross floor area of commercial space.
The Singapore government once again increased the supply of private housing on the Confirmed List of its half-yearly government land sales (GLS) programme. This is the fourth straight increase.
According to PropNex, the upcoming GLS programme will feature 6 Confirmed List sites - comprising 5 private residential sites (including one Executive Condominium (EC) site) and a commercial & residential site – up from 5 sites in the 1H2022 GLS programme. Of the 6 Confirmed List sites, 3 were moved up from the 1H2022 Reserve List (Bukit Timah Link, Hill View Rise, and Lentor Gardens), while 3 others were newly-added (Marina Gardens Lane, Tengah Plantation Loop (EC), and Tampines Avenue 11). All in, these 6 sites can yield about 3,505 private residential units (including 495 EC units) and 14,750 sqm gross floor area of commercial space.
Here’s more from PropNex:
The 3,505 private residential units under the 2H2022 Confirmed List is about 26% higher than the 2,785 units in the 1H2022 slate. It is also the highest number of private housing supply under the Confirmed List since 3,915 units were offered in the 2H2014 GLS.
Meanwhile, 8 sites have been placed under the 2H2022 Reserve List which will be made available for application, providing developers the option to trigger the sites for sale should they see demand for them. The Reserve List comprises 6 private residential sites (including two EC sites), a White site and a hotel site. These Reserve List sites can offer an additional 3,805 private residential units (including 1,000 EC units), 80,000 sqm GFA of commercial space and 530 hotel rooms.
The 6 Confirmed List sites are quite well spread out including sites in the suburban areas, the city fringe and the city centre, which will provide would-be homebuyers with varied private housing options.
Following a bumper year of new home sales in 2021, a record low level of unsold new private home stock (14,087 units (ex. ECs) as at the end of Q1 2022), and the healthy response at recent launches, we were cautiously optimistic that the government would ramp up the private housing supply for 2H2022. We are heartened that it has raised the private housing supply by about 26% in the upcoming GLS, however, we think the increase is measured and may not fully satiate the hunger for residential land among developers, who are looking to replenish their land inventory after the robust home sales last year. To this end, we would expect developers to remain interested in the collective sales market, tapping suitable and realistically priced en bloc sites to complement their development pipeline.
One highlight of the 2H2022 GLS is the Marina Gardens Lane site that is scheduled to be launched for sale in December 2022. This plot – which can yield 795 homes and 750 sqm of commercial space – will kickstart the development of the Marina South neighbourhood. We anticipate homes in the future Marina Gardens Lane project to be highly desirable, given the plot’s location in downtown Singapore, potential connection to the upcoming Marina South MRT station, and likely spectacular views all-round of the city skyline, Gardens by the Bay, and the sea to the south. There would be excitement among developers for this site and we think bidding will be keen as developers will want to get a first-mover advantage in the new Marina South precinct.