_H2 2023 Government Land Sales Programme
Residential Sites
The government continues to increase the number of sites with more units for private residential development. The projected number of private housing units (including Executive Condominiums (ECs)) in the Government Land Sales (GLS) Confirmed List for H2 2023 grew 26.2% to 5,160 units from the 4,090 units in H1 2023, after having increased 16.7% in H1 2023 and 25.9% in H2 2022. The government has been steadily increasing private home supply to meet the demand for housing (both for purchase and rental) that has blossomed in post-pandemic Singapore. However, this latest increase in supply comes on the back of the cooling measures that took effect in late-April 2023. With the prevailing economic uncertainty, clouded business sentiment and escalating interest rates, added to the latest round of cooling measures, the risks of private residential development have increased substantially and it remains to be seen whether developers will have the same appetite for the newly introduced GLS sites, even though demand for new private homes remain intact.
The H2 2023 GLS list also introduces new sites in the Core Central Region (CCR) at Orchard Boulevard and Zion Road (Parcel A) on the confirmed list, and Holland Drive and Zion Road (Parcel B) on the reserve list. These four sites can potentially inject over 2,500 units in the CCR. Additionally, it does appear that with the commissioning of new MRT lines in recent years such as the Thomson-East Coast Line, the government is also starting to populate residential catchments along some of these new mass transit stations, such as at the Orchard Boulevard, Zion Road and Upper Thomson Road plots.
Orchard Boulevard
The newly introduced parcel at Orchard Boulevard is an attractive one, sitting next to Orchard Boulevard MRT station, and close to the premier shopping belt at Orchard Road, the embassies in the vicinity and the Singapore Botanic Gardens. The last time a GLS site was sold in the Orchard Road area was in May 2018, where Cuscaden Reserve is now being developed.
Upper Thomson Road
The two Upper Thomson Road sites (Parcels A and B) are also located on the Thomson-East Coast Line at Springleaf Station. Both are on the confirmed list. Parcel A has immediate MRT access while Parcel B is within quick walking distance. The two sites combined can generate over 1,500 new homes in what is presently a low-density landed housing area, bringing forth new human activity along quieter parts of the new MRT line.
Zion Road
Also on the Thomson-East Coast Line, situated within walking distances between Great World and Havelock MRT stations are the two Zion Road land parcels, with Parcel A (estimated 955 residential units) in the confirmed list and Parcel B (estimated 605) in the reserved list. The most recent GLS site closest to these newly introduced pair of Zion Road plots was the land parcel along Jiak Kim Street, which is the newly completed Rivière. The two land parcels along Zion Road will be attractive to both developers and homebuyers due to the accessibility to public transport nodes, a short drive from the Central Business District (CBD), as well as shopping amenities.
Holland Drive
The Holland Drive site introduced in H2 2023 can be an interesting one for developers, as it is located next to One Holland Village Residences. One Holland Village Residences has had 96% of its units sold as reported in the May 2023 developer sales data, suggesting a healthy level of demand for residential units at this location. It is in close proximity to Holland Village MRT station, the bustling Holland Village, which will provide great convenience to the estimated 680 units new homes, should the site be triggered, sold and developed.
De Souza Avenue
The De Souza Avenue site on the reserve list is located close to the Bukit Batok Nature Park and Bukit Timah Nature Reserve, attracting the type of buyers that prefer to live close to greenery and recreational options.
Hotel
With Singapore’s open borders from April 2022 onwards, visitor arrivals multiplied exponentially from 121,207 in March 2022 to 1.1 million by May 2023. Interest in the recovering hospitality sector has finally rekindled and will gain even more traction going into 2023. The sole hotel site at River Valley Road on the Reserve List has been there since H2 2019 for four years now, and could possibly be triggered with the entire precinct in the vicinity of the site undergoing revitalisation.