Singapore Property | Government is set to increase supply of land dedicated to private housing for the second half of 2017. Handy Road and Hillview Rise are on the list of confirmed sites.
This is the government’s response to an increasing demand from homebuyers and a decreasing unsold stock. Listed in the Government Land Sales (GLS) Programme are six sites, which include four private residential properties (one is an executive condominium in Sumang Walk). The remaining two are a mix of commercial and residential properties.
The six residential sites are located in Handy Road, Hillview Rise and Chong Kuo Road. A mix of commercial and residential sites, which can accommodate 1,370 housing units and 26,800 sqm of commercial space, are located in Sengkang Central and Holland Road. The Holland Road property, which occupies 13,500 sqm was originally limited to 6,800 sqm for retail establishments. However, due to favorable market feedback and the need to make use of public spaces along the Holland Village extension, the area has been increased considerably.
The confirmed GLS list records 2,840 private housing units. This figure is 510 units (20%) more than the original 2,330 units in the first half of 2017.
The ministry says that the increase is to ensure sufficient supply of private housing units to meet demand.
Nine private residential properties and one commercial site are on the reserve list. This will accommodate 5,285 private residential units and 56,790 sqm of commercial space. The largest retail GFA for the Woodlands Square property was trimmed down from 8,000 sqm to 3,000 sqm. This was done in light of the developmental plans and provisions for the commercial amenities.
It has been reported that land sales by the government for residential developments have been catching attention. Bids for the early part of June 2017 hit S$1.1 billion. This is for a 99-year leasehold in Bidadari estate. This is a good mix of both commercial and residential units. On the other hand, two China-based property developers topped this bid last May for an exclusively residential site in Queenstown.
Despite a decline in supply in the private residential market, bids from prominent developers were submitted. Pipeline supply, which includes ECs, plunged to 46,016 units during the first quarter of 2017. This figure originated from a high of 50,548 units late of 2016.
Without taking EC’s into consideration, incoming supply decreased to 36,942 units for the first quarter of 2017. This is from a high of 40,913. The vacancy rate for the same set of residential properties saw itself sink by 0.3 percentage points. (From 8.1% to 8.4%)
Tenders have been awarded for three sites on the confirmed list, says the ministry. Two tenders are still in process.
The reserve list has 10 sites. Stirling Road hosts a residential site, which has already been sold. The sale of the commercial site along Beach Road is expected to be finalized by September.
The residential site in Owen Road has been taken off the reserve list for review. This site was supposed to be made available for sale this June.
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