River Valley, Queenstown GLS sites to be top draws in H1’24.
In the first quarter of 2024, the Government Land Sales program (GLS) will offer ten sites for residential private construction. Eight sites are confirmed, while two others are on a reserve list.
Analysts are paying attention to a plot in River Valley’s prime central area as well as a plot along Margaret Drive.
The River Valley Green (Parcel A), a 0.93-hectare plot, is capable of producing 380 private houses. The site is in close proximity to Singapore’s Orchard retail belt, as well as Great World MRT station. The launch is anticipated to take place in March 2013.
Analysts predict a high level of interest in this site due to its central and accessible location.
CanningHill Piers, Riviere, and Irwell Hill Residences have all launched in the area, attracting strong interest from buyers.
CanningHill Piers has sold in 77 per cent (of its 696 units) at a price per square foot of S$3,000 during its opening weekend in November 2020.
Developers are also more interested in the River Valley plot than the nearby Zion Road site (Parcel B), which opened for tender on Monday. In addition to the smaller River Valley plot, which translates to a cheaper quantum price, developers do not need to include long stay serviced apartments.
Even so, River Valley’s irregular and rather long shape will require more creative thinking in terms of project design and development than one with a more standard shape.
The parcel is 0.95 hectares and has the potential to generate 460 new homes. It is just minutes away from Queenstown MRT. There are 500 sq m of minimum childcare space. The site is scheduled to open in May of 2024.
If sold, the parcel on Margaret Drive would be the first to be sold in the area for the year 2017.
In May 2017 the Stirling Road Site, where 99 year leasehold Stirling Residences currently stands, attracted 13 bidders. Hong Kong Logan Property Holdings’ and China Nanshan Group’s winning offer of more than S$1b was the highest bid. This translated into a land price of S$1,050.70 for each plot ratio. It was then a record in the Queenstown region.
Upgrader demand can be met by a new condo development in Queenstown. The area has some of highest Housing & Development Board resale valuations.
Jalan Loyang Besar EC, with its 2.84 ha of land, will yield approximately 710 apartments. Pasir Ris MRT and shopping malls such as Pasir Ris Mall & White Sands, are within walking range.
Observers say this site is likely to be one of those most fiercely contested sites when it opens for tenders in 2024. One, it’s the lone EC site in the confirmed list. This segment will be closely watched by developers because of its compelling value proposition.”
In Tampines, the competition was intense for the final EC site that was put up for sale at Tampines 62 (Parcel b). The tender in October attracted nine bidders, with a top offer of S$543.28m – a rate of land that was a record S$721psfppr.
In Pasir Ris there is a pent-up need for ECs given the fact that the last EC there was launched in 2013 at the location of the 99 year leasehold Sea Horizon.
ECs also represent the most affordable private hybrid homes available at this time, attracting mass market buyers, especially among first-time homebuyers and upgraders.
The list of confirmed supply for the H1-2024 program includes five other residential areas, including a development mixed-use in Tampines Street 94 in Buonavista and another one in Media Circle at Buonavista that will be used to build long stay serviced apartment. They are of an acceptable size and should draw a moderate amount of demand.
The Tampines Street 94 residential and commercial parcel covers 2.35 hectares. It has a retail ceiling of 10,500 sq m as well as a minimum of 650 sq m for childcare. It will yield 585 homes, and it is anticipated to launch in the summer of 2024.
For the rapidly growing population of the Tampines area, the site may be the only major retail mall within 800 metres.
This site could be attractive to developers who want heartland retail exposure. This plot could also benefit from pent-up housing demands as there haven’t been any GLS sites near for around 20 years. Since the awarding of the Bay Water Residential site along Bedok Reservoir Road, in December 2000.
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There are other sites confirmed on the list, including a site in Canberra Crescent that will accommodate 375 houses, a site in Dairy Farm Walk which will house 530 residences, and yet another site in Tengah Gardner Avenue where 860 residences can be built.
Two new sites are on the reserve lists of the H1 GLS Programme. They are in River Valley Green and Bayshore Road. Sites that are on the H1 2024 GLS Reserve List can only be sold if the government approves of the minimum price a developer specified in their application.
Market watchers feel that Bayshore Road parcel will be the more likely of the two to trigger an auction.
Bayshore site is the first private land sale in the region. He anticipates a high level of interest among developers and purchasers due to its proximity East Coast Park and Bayshore’s upcoming MRT station.
As 3,000 private residential apartments are expected to go up in the Bayshore Precinct in the near future, competition in that market is likely to be stiff.
Tay stated that the Bayshore Road development site might also pique interest from developers. They know they can sell the project at a premium given the development and reclamation work on Long Island, as well as the development along the eastern coast.
Overall, the GLS program for H2 2024 is expected to increase private home supply, including executive condominiums, by 5.6%, to 5,450 units from 5,160 units during H2 2023. Out of the 5,450 homes, 1,035 are carried over from H2 2020 GLS Programme while 4,415 come from new locations.
This is the largest confirmed supply list since H2 2013,
Although the supply is sufficient for private housing in the short term, it will not be oversaturated.
This will control bids and land values, and signal to homebuyers that government is committed in ensuring enough supply to keep the prices in check.
