The government is increasing private housing supply for the second half of 2022 (2H2022) amid resilient housing demand

0

June 7, 2022, SINGAPORE – The government today announced its public land sales list for 2H2022 which sees a further surge in private housing supply on the confirmed list – this is the fourth consecutive increase in the number of residential units proposed in the Confirmed List under its half-yearly Government Land Sales Scheme (GLS).

The next GLS program will include 6 sites from the confirmed list – comprising 5 private residential sites (including an Executive Condominium (EC) site) and a commercial and residential site – compared to 5 sites in the GLS 1H2022 program. Of the 6 sites on the confirmed list, 3 have been moved from the 1H2022 reserve list (Bukit Timah Link, Hill View Rise and Lentor Gardens), while 3 others have been newly added (Marina Gardens Lane, Tengah Plantation Loop (EC ) and Tampines Avenue 11). In total, these 6 sites can generate approximately 3,505 private residential units (including 495 EC units) and 14,750 m² of gross floor area of ​​commercial space.

The 3,505 private residential units on the confirmed 2H2022 listing are approximately 26% higher than the 2,785 units on the 1H2022 listing. It is also the largest number of private housing offers under the confirmed list since 3,915 units were offered in the GLS 2H2014.

Residential units under GLS (confirmed list and reserve list)

Source: PropNex Research, DND


Meanwhile, 8 sites have been placed under the 2H2022 reserve list which will be made available for application, giving developers the ability to trigger the sale of sites if they see demand for them. The reserve list includes 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 GFA m² of commercial space and 530 hotel rooms.

Ismail Gafoor, CEO of PropNex Realty:
“The 6 sites on the confirmed listing are fairly well spread out, including sites in suburban areas, city outskirts and downtown, which will provide potential buyers with a variety of private housing options.

After an exceptional year of sales of new homes in 2021, a record level of unsold new homes in private homes (14,087 units (excluding EC) at the end of the first quarter of 2022) and the good response from recent launches, we have been cautiously optimistic that the government would increase the supply of private housing by 2H2022. We are encouraged that this has increased private housing supply by approximately 26% in the next GLS, however, we believe the increase is measured and may not fully satisfy the thirst for residential land among developers. , who are looking to rebuild their land inventory after robust home sales last year. To that end, we expect developers to remain interested in the collective sales market, operating suitable and realistically priced bulk sites to complete their development pipeline.

One of the highlights of GLS 2H2022 is the Marina Gardens Lane site which is expected to go on sale in December 2022. This land – which can produce 795 homes and 750m² of commercial space – will kick off the development of the Marina South neighborhood. We anticipate that the homes in the future Marina Gardens Lane project will be highly desirable, given the plot’s location in downtown Singapore, potential connection to the upcoming Marina South MRT station and likely spectacular views of the city ​​skyline, Gardens by the Bay, and the sea to the south. There would be excitement amongst developers for this site and we believe the bidding will be strong as developers will want to gain a first mover advantage in the new Marina South area.

Wong Siew Ying, Head of Research and Content, PropNex Realty:
“The next confirmed GLS 2H2022 listing offers developers a good mix of project development sizes, from 160 units at Bukit Timah Link to 1,190 units at the Tampines Avenue 11 mixed-use development. In particular, the Tampines Avenue site 11 will not only provide a timely injection of new mass market homes, but also offer greater convenience to residents of the area, with its 14,000m² of commercial space – being nestled in an area with several new development projects. social housing as well as an upcoming EC project at Tampines Street 62 (Plot A).

Meanwhile, the Bukit Timah Link site – with an acceptable development size of 160 units – is expected to generate strong interest among developers, including small players. Besides its attractive location near MRT Beauty World station and opposite the upcoming mixed-use development Jalan Anak Bukit, potential bidders will be emboldened by strong sales from the adjacent Linq @ Beauty World which sold 96% of its units at a average price of $2,150 to $2,200 psf when launched in November 2020.

The government continues its efforts to develop the residential population in the Lentor area. GLS 2H2022 offers a lender site in each of the confirmed list and the reserve list. Lentor Gardens under the confirmed listing can potentially offer 530 residential units. With the sale scheduled for October 2022, we expect potential site bidders to refer to the results of the GLS tender for the neighboring sites of Lentor Central and Lentor Hills Road (Parcel B) which will close on 13 september. This can help ensure that land offers are measured given the expected influx of new homes in the Lentor area.

Each of the sites on the confirmed list has its own strengths. For the land at Hillview Rise we think it is attractive as it is within walking distance of nearby retail offerings at Hillv2 as well as the Hillview MRT station on the Downtown Line. In addition, it is also located in an exclusive private residential enclave, where the supply of new private condos is still relatively limited.

The Tengah Plantation Loop EC site – which can produce 495 EC – will provide private accommodation to complement the large number of HDB apartments in the new Tengah estate. This is one of four EC sites in the Tengah and Bukit Batok area, the others nearby being: Tengah Garden Walk, Bukit Batok West Avenue 8 and Bukit Batok West Avenue 5. We are awaiting land offers for Tengah Plantation Loop EC that the site is strong and could potentially set a new record land price for an EC GLS site, given its proximity to the Jurong Lake District.

Share.

Comments are closed.