By Wong Siew Ying | POSTED: 18 Dec 2013 12:12 | CNA

SINGAPORE

The government will be releasing eight confirmed list sites and 15 reserve list sites under the Government Land Sales (GLS) programme for the first half of next year.

The sites can yield up to 11,600 private residential units, including 2,800 executive condominium (EC) units, and 193,000 square metres (sqm) gross floor area (GFA) of commercial space.

The number of units for the first half of next year is lower than the 14,200 units released for the second half of this year, and 14,000 units in the first half of this year.

According to the Urban Redevelopment Authority, the total supply of private housing units under 1H2014 GLS Programme at 11,585 units is the lowest since 1H2010, when the total supply was at 10,550 units.

In a statement on Wednesday, the Ministry of National Development (MND) said the new sites, together with the large supply of projects in the pipeline, are expected to be sufficient to meet the demand for private housing and commercial space over the next few years.

The confirmed list contains three private residential sites, four EC sites, and one commercial and residential site.

The land parcels in the suburban or city fringe areas can yield about 4,600 private homes (including 2,200 EC units) and 5,000 sqm GFA of commercial space.

The residential units will be added to the existing pipeline supply of about 97,400 private housing units, including ECs.

Nicholas Mak, executive director of SLP International Property Consultants, said: “For developers who have acquired development sites and their projects are not launched for sale yet, the new GLS programme will probably be greeted with a sigh of relief because it means potentially less competition for their existing projects.”

Market watchers said the mixed development site, which is near several new housing projects at Potong Pasir will attract keen competition. It is expected to offer 685 residential units and 5,000 square metres of commercial space.

Overall, the slate of land to be offered will help keep home prices stable.

MND said tenders for two pairs of sites at Yishun Street 51 and Fernvale Road on the confirmed list will be batched to encourage more prudent bidding by developers.

Donald Han, managing director of Chesterton Singapore, said: “There are not many prime sites in the market, the majority of these are actually suburban sites.

“The sales of site price-point might see less competition, which might lead to some realistic pricing for land bid tenders next year… We have hit the peak and now a correction of about probably 5 to 8 per cent for 2014 is on the cards.”

For the EC sites, some analysts expect the land price to drop by about 5 per cent as developers become more cautious with their bids, after taking into account the recently announced measures — including the 30 per cent mortgage servicing ratio and the resale levy for HDB upgraders.

Meanwhile, the reserve list contains 13 private residential sites — including one EC site — which can yield about 7,000 private residential units, including 600 EC units.

In particular, analysts said the site at Margaret Drive should be popular with home buyers.

Under the reserve list system, a site will only be put up for tender if the minimum bid price submitted by the interested party is acceptable to the government.

The reserve list also included a white site at Marina View and a commercial site at Sims Avenue, which will offer 88,000 sqm GFA of commercial space.

MND said these two plots will provide opportunities for interested developers if there is demand above the 1.1 million sqm GFA of office space in the pipeline.

With a healthy pipeline supply of 12,700 hotel rooms, MND will be removing the hotel site at Race Course Road, which was available for sale through the reserve list from May 2011. This will facilitate a review of the land use intention for the site.

– CNA/al/ac

http://www.channelnewsasia.com/news/singapore/govt-releases-h1-2014/926434.html