_GLS Programme H1 2024
Summary of Residential, Commercial and Hotel Sites in H1 2024 vs H2 2023
Residential Sites
The projected number of private housing units (including Executive Condominiums (ECs)) in the Government Land Sales (GLS) Confirmed List for H1 2024 grew 5.6% to 5,450 units from the 5,160 units in H2 2023, after having increased 26.2% in H2 2023 and 16.7% in H1 2023. The rate of increase is slowing and with supply coming into balance with homebuyer demand, perhaps the H1 2024 GLS list will encapsulate the peak number of projected private homes going forward. With the prevailing economic uncertainty, clouded business sentiment and elevated interest rates, added to the latest round of cooling measures (April 2023), the risk from private residential development remains substantial with developer participation in GLS tenders dropping noticeably in the past six months.
The H1 2024 GLS list also continues to introduce new sites in the Core Central Region (CCR) in the vicinity of Zion Road and Great World MRT Station with River Valley Green (Parcel A) on the confirmed list, and River Valley Green (Parcel B) on the reserve list. Additionally, it does appear that sites are also being introduced in the Confirmed List in certain areas where there have not been GLS tenders for quite some time. These include Jalan Loyang Besar in Pasir Ris, Margaret Drive in Queenstown and the mixed development at Tampines Street 94 along Bedok Reservoir Road.
Jalan Loyang Besar
The newly introduced parcel at Jalan Loyang Besar is meant for executive condominium (EC) development and is expected to be among the most hotly contested during the tender exercise. ECs are the most affordable form of hybrid private homes at the moment and hence able to attract the largest volume of potential mass market buyers, especially in the upgrader and first home purchaser categories. It is also located next to the recreational and retail facilities of Downtown East.
Margaret Drive
The Margaret Drive site is in the popular HDB area of Queenstown. A new condominium development in such an area with some of the highest HDB resale values can tap onto upgrader demand where buyers can make use of the proceeds from HDB resale premiums to transit into the private home market.
Tampines Street 94
The mixed residential and retail development at Tampines Street 94 along Bedok Reservoir Road is in a developed residential area straddling both populous towns of Tampines and Bedok. With a variety of both public and private homes in the neighbourhood, an integrated development in this area will attract the type of buyers that prefer to live close to the recreational options at Bedok Reservoir Park, immediate access to a shopping mall as well as the amenities in both HDB estates.
More Residential Sites for Areas with Recent GLS Supply
Along with sites in areas that have not had a GLS tender for a number of years, the H1 2024 GLS Confirmed List also includes sites where the government has been pushing private residential development. This includes the Canberra Crescent, Media Circle, Dairy Farm Walk and Tengah Garden Avenue plots in Sembawang, one-north, Dairy Farm and Tengah respectively.
Media Circle
The land site at Media Circle introduced in H1 2024 has a relatively small site area of approximately 0.57 ha, it has a development potential of slightly over 500 units with its GPR of 4.2. This site is interesting as it is stipulated for long-stay Serviced Apartments use only, and developers would not need to sell out within five years to obtain the Additional Buyer’s Stamp Duty (ABSD) remission. Views from high floors would attract research and technical professionals who would like to live and work in the media and science park hub of one-north.
Dairy Farm Walk
The Dairy Farm Walk land site is located close to the German European School Singapore and Dairy Farm Nature Park.
Tengah Garden Avenue
This land site at Tengah is the first non-EC site to be launched in the area. It will be interesting for developers given the development potential of Tengah as the newest residential township in Singapore. In addition, it will be located close to the future Hong Kah station along the Jurong Regional Line.
Reserve List
The two new sites of Bayshore Road and River Valley Green (Parcel B) introduced to the Reserve List are the most intriguing and would have the most chance of being triggered despite the inactivity on the Reserve List.
Bayshore Road
The site at Bayshore Road seems the most promising, situated above the upcoming Bayshore MRT station. Potential residents will be able to enjoy the convenience of mass transit access to the Central Business District (CBD), Gardens by the Bay, as well as the Orchard Road Shopping Belt via the Thomson-East Coast Line (TEL). Furthermore, residents can easily reach Changi Airport, that is within a ten-minute drive eastward. As the last two GLS land tenders (The Bayshore and Costa Del Sol) along Bayshore Road were more than two decades ago, this Bayshore Road site would pique developers’ interest, knowing that the project can be sold at a high premium given the development of the Long Island reclamation and development along the eastern coast of Singapore.
River Valley Green (Parcel B)
The River Valley Green (Parcel B) site is another promising site in the GLS Reserve List where a portion of the GFA will be for long-stay Serviced Apartments. This mitigates a developer’s risk of incurring ABSD as a result of not being able to fully sell all the residential homes within the five-year timeline. Furthermore, the site is located next to the Great World MRT Station, which is a stop away from the Orchard Road shopping belt.
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