Analysts believe the ramped up supply of development sites under the Government Land Sales (GLS) programme for H2 2017 is insufficient to meet the developers’ demand for sites given the declining stock of unsold private homes.
Announced yesterday, the H2 2017 GLS Programme comprise six sites on the confirmed list and 10 reserve list sites.
Four of the confirmed list sites are for residential – including one executive condominium site – while two are mixed use sites. They could yield 2,840 private homes units as well as 26,800 sq m gross floor area (GFA) of commercial space.
The reserve list, on the other hand, has nine private residential sites and one commercial. The sites can accommodate 5,285 units of private homes and 56,790 sq m GFA of commercial space, mainly for office use.
Describing the allocation as “measured” and “conservative”, market analysts said the sites released by the government may not be enough to satisfy developers, reported The Straits Times.
“Given the demand crunch for residential sites, developers could be steered towards triggering sites on the reserve list as well as sourcing from the collective sales market,” said JLL national director for research and consultancy Ong Teck Hui.
Plum sites on the confirmed list, such as Sengkang Central, Holland Road and Handy Road, are expected to witness bullish bidding and stiff competition.
The Cuscaden Road and Jiak Kim Street Forth Avenue sites on the reserve list are also expected to interest developers given their prime locations.
“These offer very palatable quantums and are expected to set new benchmarks,” said CBRE research head for Singapore and South-east Asia Desmond Sim.
This article was edited by Denise Djong.
