The Ministry of National Development (MND) announced on 3 December it will release three confirmed sites for private residential developments in the 1H 2020 Government Land Sales (GLS) programme, each with their own plus points.
The 1H 2020 sites will yield a combined 1,775 units. While the number of sites and units released is lower than the five confirmed sites and 2,025 total homes in the 1H 2019 exercise, it is comparable to the 1,715 units released in the second half of 2019 across five sites.
Confirmed sites are land parcels that are launched according to schedule, regardless of demand. Reserve sites, on the other hand, are launched only upon successful application by a developer or when there is sufficient market interest in a site.
Out of the three confirmed sites for 1H 2020, two are solely private residential sites located at Yishun Avenue 9, a Executive Condominium site, and Tanah Merah Kechil Link. Both sites can yield 600 and 310 residential units respectively. Notably, the Jalan Anak Bukit site is a mixed residential and commercial integrated transport hub that can yield 865 housing units.
Here’s our analysis of the three GLS confirmed sites for the first half of 2020:
H1 2020 GLS Confirmed Sites: An Analysis
The Jalan Anak Bukit GLS site (marked with red dot). Credit: URA
The Guru View: Not only will the 865 housing units at the Jalan Anak Bukit GLS site (marked with red dot) be highly sought after, its role as the new commercial and transport hub in District 21 could attract buyers to existing newly launched projects in the area (marked in red text) and bring value upside to Bukit Timah HDB estate, the smallest HDB estate in Singapore by number of units.
The eventual developer of the GLS site will likely build the condominium blocks atop a two-storey podium mall with 20,000 square metres (sq m) of commercial space. The site is also expected to provide residents and visitors with a seamless underground connection to nearby Beauty World MRT station on the Downtown Line.
Despite the convenience factor, this mixed-use project won’t appeal to everyone. In any case, the unit price for this project will likely be higher than surrounding new launches because of its proximity to the MRT and its mixed-use, integrated hub credentials, according to Tan Tee Khoon, Singapore Country Manager at PropertyGuru. For those contemplating a quieter existence, check out these private homes for sale in District 21.
The Tanah Merah GLS site (marked with red dot). Credit: URA
The Guru View: At the doorstep of the Tanah Merah MRT interchange station, this GLS site (marked with a red dot) will include 2,000 sq m of commercial space and 310 condominium units. As it stands, this would be the second last opportunity to buy a new launch condo in the Tanah Merah neighbourhood.
Even though there are many established condominiums in the vicinity, this GLS site still has a comparative advantage, location-wise. Not only is it literally at the doorstep of Tanah Merah MRT (only two stops from Changi Airport), it is on the same side as Simpang Bedok, a popular dining and lifestyle haunt for residents in the region. Residents will also benefit from having shops, and probably a supermarket, directly underneath the condominium.
Meanwhile, more amenities are available in the nearby towns of Bedok, Simei and Tampines and at Expo station, not to mention Changi Jewel, so you’ll never get tired of the same hangout. If you can’t wait to live here, check out the many properties already available around Tanah Merah MRT station.
The Yishun GLS site (marked with red dot). Credit: URA
The Guru View: At first glance, this Executive Condominium (EC) site of 600 units seems like it is located in a deserted corner of suburban Yishun, but this would mean that units here could come at a very competitive price point, likely cheaper than the two ECs launching at neighbouring Canberra town in 2020.
And although residents of this EC will be beyond walking distance to Yishun MRT station, they are within 500 metres (a 6-minute walk) to Junction 9, a relatively new neighbourhood mall with daily necessities and dining options within easy reach. This EC will also be sited next to untouched forest, so residents are likely to be guaranteed fresh air!
That said, there are a number of comparable (and affordable) private homes in the Yishun and Sembawang region that are worth a look.
Large Number Of GLS Units In The Pipeline: MND
The MND indicated that despite a progressive decline of unsold private housing units throughout 2019, there are still about 39,000 units in the pipeline. Of this, 34,000 are from GLS and collective sale sites with planning approval, whereas 5,000 units are still awaiting approval.
Considering the number of unsold units, MND stated that the number of confirmed sites to be released in 1H 2019 is in line with the government’s intention to moderate the large supply of unsold private residential units in the market.
“While the demand for private housing units has increased in the past two quarters, the overall transaction volume has remained modest relative to the period leading up to the introduction of the property market cooling measures,” MND said, reported The Straits Times.
“The Government will continue to monitor the property market closely and adjust the supply for future GLS programmes, as necessary.”
Government May Sell Land For Up To 6,490 Private Homes In H1 2020
With 1,775 private residential units on the confirmed list, the remainder of the units are in the reserve list, which may not be triggered for sale. The reserve list consists of four private residential sites (including one EC site), three white sites and one hotel site.
These sites can yield about 4,715 private residential units (including 595 EC units), 92,000 sq m GFA of commercial space and 1,070 hotel rooms.
The four private residential sites are located at Dairy Farm Walk, Dunman Road, Hillview Rise and Tampines Street 62 (EC site). The three white sites are at Marina View, Woodlands Avenue 2 and Kampong Bugis, and the hotel site is located at River Valley Road.
In total, land for 6,490 homes may potentially be sold under the reserve and confirmed list sites in the H1 2020 GLS programme.
Kyle Leung, Digital Content Manager at PropertyGuru, edited this story.
Victor Kang • December 5, 2019
Source: Propertyguru