H2 government land sales programme to have more private housing supply, first sale site in Marina South

07 Jun 2022
Property News

The Marina Gardens Lane site is etched in red in this aerial view of Marina South. 

THE government land sales (GLS) programme for the second half of 2022 will continue to have a larger supply of private housing, amid a resilient demand and declining inventory.

The programme comprises 6 confirmed list sites and 8 reserve list sites, which are expected to yield around 7,310 private residential units, 94,750 square metres (sq m) gross floor area (GFA) of commercial space, and 530 hotel rooms, the Ministry of National Development (MND) said on Tuesday (Jun 7).

Amid a consistently strong demand for private housing, MND is increasing the supply of private housing on the confirmed list to 3,505 units in H2, from 2,785 units in H1, to ensure sufficient supply and to maintain market stability.

MND also expects the supply on the reserve list will give developers a good selection of sites to initiate for development if they assess that there is demand. Sites on the reserve list are launched only upon successful application by a developer or when there is sufficient market interest.

On the confirmed list, there are 5 private residential sites, including 1 executive condominium (EC) site, and 1 commercial and residential site. This would yield around 3,505 private residential units (including 495 EC units) and 14,750 sq m GFA of commercial space.

The reserve list comprises 6 private residential sites, including 2 EC sites, 1 white site and 1 hotel site on River Valley Road, which can yield an additional 3,805 private residential units (including 1,000 EC units), 80,000 sq m GFA of commercial space and 530 hotel rooms.

Catherine He, head of research for Singapore at Colliers, expects the residential sites will attract “a healthy level of bidding”, adding that the sites located in upcoming residential estates – such as Hillview Rise and Lentor Gardens – should also see strong demand from upgraders.

“The increase in residential units introduced will help to provide a much-needed boost for developers to shore up their land inventory, as the supply from GLS sites is gradually stepped up,” she said.

Among the sites announced, a residential site on Marina Gardens Lane is a new site introduced in the half-year period, located in the Marina South precinct that is situated next to Gardens by the Bay.

The Marina South precinct, which was unveiled by the Urban Redevelopment Authority in the Draft Master Plan 2013, will be a self-sufficient neighbourhood comprising a mix of retail, office, hotel and residential uses, and is envisioned to be a sustainable and car-lite precinct.

MND expects the launch of the first sale site at Marina Gardens Lane will kick-start the development of the Marina South neighbourhood.

Analysts expect the Marina Gardens Lane site will draw attention, with Huttons Asia senior director of research Lee Sze Teck saying that it is the “best site” on the confirmed list.

“It offers a first-mover advantage to both developers and buyers,” Lee said, expecting the huge outlay of more than S$1 billion may attract a handful of developers.

Meanwhile, the white site – on Woodlands Avenue 2 for a mixed-use development – as well as the hotel site on the H2 reserve list are carried over from the H1 reserve list.

Source: The Business Times
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