View Full Version : GLS 2H17 - URA just released 4 confirmed res sites, 2 mix used sites
ThatBurger
29-06-17, 11:06
So everyone, where do you think the market will go now? Confirmed sites is expected to yields slightly more units that last half-year, total GLS units for 2017 residential use will be ~ 5200 units. How many units will be available in totality for 2017, ie pipeline for 2022 +- 1 year. We are going to face scarcity as predicted?
Release of second half 2017 Government Land Sales (GLS) Programme
The Government today announced the second half 2017 (2H2017) Government Land Sales (GLS) Programme, which comprises six Confirmed List sites and 10 Reserve List sites. These sites can yield up to 8,125 private residential units and 83,590 sqm gross floor area (GFA) of commercial space (see Appendix 1 & Appendix 2 [PDF, 8kb]).
The Confirmed List comprises four private residential sites (including one Executive Condominium site) and two commercial & residential sites which can yield 2,840 private residential units and 26,800 sqm GFA of commercial space.
The Reserve List comprises nine private residential sites and one commercial site. These sites can yield 5,285 private residential units and 56,790 sqm GFA of commercial space, mostly for office use.
Supply of Private Housing
The supply of 2,840 units from the Confirmed List is higher than the 2,330 units from the 1H2017 Confirmed List, whereas the supply of 5,285 units from the Reserve List is close to the 5,135 units from the 1H2017 Reserve List.
Overall, the total supply of 8,125 units from the 2H2017 GLS Programme is higher than the supply of 7,465 units from the 1H2017 GLS Programme.
As the demand for new private housing from home buyers continued to rise in the first half of 2017, the number of unsold private housing units in the pipeline has declined. Hence, there is a need to inject a larger supply of residential sites through the GLS Programme to ensure that there is an adequate pipeline supply of new private housing units to meet the needs of our population.
Supply of Commercial Space
The 2H2017 Reserve List includes one site at Woodlands Square for a mixed-use development comprising mainly office space. This site will allow developers to initiate the development of more office space if they assess there is demand.
"The Confirmed List comprises four private residential sites (including one Executive Condominium site) and two commercial & residential sites which can yield 2,840 private residential units and 26,800 sqm GFA of commercial space.
The RESERVE List comprises nine private residential sites and one commercial site. These sites CAN yield 5,285 private residential units and 56,790 sqm GFA of commercial space, mostly for office use."
Look at the figures and the types of sites carefully.
https://www.ura.gov.sg/uol/media-room/news/2017/Jun/pr17-42a
Latest news:
SINGAPORE: The property market in Singapore has “substantially stabilised” over the last three years, but it is not time yet to ease the cooling measures, Monetary Authority of Singapore (MAS) managing director Ravi Menon said on Thursday (Jun 29).
Speaking at the release of MAS’ annual report for 2016/2017, Mr Menon said the cooling measures remain necessary amid strong demand for private residential properties from home buyers and investors.
Over the medium term, property prices are expected to be aligned with broader income trends in the economy, Mr Menon said.
Private residential property prices have declined by nearly 12 per cent over the last 14 quarters, following an increase of close to 60 per cent over 17 quarters.
Ultimately, he said, residential property purchases are financed by buyers’ income, which is dependent on GDP growth.
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“If property prices increase faster than nominal GDP growth on a sustained basis, buyers would end up taking on more leverage than they can reasonably repay out of their incomes,” he said.
Mr Menon added that the adjustments by the Government earlier this year “do not signal the start of an unwinding of the property cooling measures”, but instead, were made for very specific reasons and purposes.
In March this year, the Government reduced the Sellers Stamp Duty holding period and lowered the rates, while mortgage equity withdrawal loans with loan to value ratios of 50 per cent or less were excluded from the Total Debt Servicing Ratio framework.
SEGMENTS OF ECONOMY REMAIN WEAK
Turning to the Singapore economy, Mr Menon said the country’s GDP is expected to grow 1 to 3 per cent this year, with a “strong likelihood” that it will be higher than the 2 per cent registered last year.
The growth has been somewhat uneven across sectors, but is expected to “gradually broaden to the rest of the economy”, he added.
While the trade-related cluster has been a major driver, he said the domestic-oriented cluster has had lacklustre growth and some segments are expected to remain weak.
The current neutral monetary policy stance, in place since April 2016, has helped stem disinflation pressures in the economy, Me Menon said.
MAS core inflation is projected to average 1 to 2 per cent this year, up from 0.9 per cent in 2016, while CPI-All Items Inflation is expected to come in at 0.5 to 1.5 per cent, up from -0.5 per cent last year.
Mr Menon said the current monetary policy stance “remains appropriate for an extended period”, in view of the stable inflation and growth prospects for 2017.
“The neutral policy stance should anchor inflation on a gradual ascent towards its historical norm and ensure medium-term price stability,” he said. “This policy is of course predicated on domestic inflation and growth prospects keeping to their projected trajectories.”
Source: CNA/cy
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Seems like MAS does not want too much price fluctuation. Property price will be controlled and it will increase in tandem with economy. There will be big fluctuation only if there are global crisis. I still think it is better to be vested and have some spare cash to size opportunity when it comes.
Amber Woods
29-06-17, 19:57
Quote:
Latest news:
Over the medium term, property prices are expected to be aligned with broader income trends in the economy, Mr Menon said.
Private residential property prices have declined by nearly 12 per cent over the last 14 quarters, following an increase of close to 60 per cent over 17 quarters.
Ultimately, he said, residential property purchases are financed by buyers’ income, which is dependent on GDP growth.
Investor to think twice since property appreciation is limited in the future, of course if they believe in what gov/mas said :)
Investor to think twice since property appreciation is limited in the future, of course if they believe in what gov/mas said :)
On the other hand, those waiting for price to drop may have to wait even longer as the CMs are really very powerful. No big swing. Wiser to stay vested and even wiser to have spare bullets.
Amber Woods
30-06-17, 17:18
Investor to think twice since property appreciation is limited in the future, of course if they believe in what gov/mas said :)
For investor, if you have not bought any, may be wise to wait.
If you bought during the low, may want to consider to take profit especially if it is OCR 99 yrs properties more than 20 years old. If your entry price is high, than stay invested and collect rents.
walkthetiger
30-06-17, 18:57
For investor, if you have not bought any, may be wise to wait.
If you bought during the low, may want to consider to take profit especially if it is OCR 99 yrs properties more than 20 years old. If your entry price is high, than stay invested and collect rents.
Recent news, minimum stay period for Private Homes cut. A pacifier for those who had entered at the highest, they will it very soothing.
Recent news, minimum stay period for Private Homes cut. A pacifier for those who had entered at the highest, they will it very soothing.
Those who like short term rental, can only wish them luck!
I only worry for the waiters, due to the impact this will have on vacancy rates and rents declared, plus number of rental transactions.
It was noted that most of the winners of the land bids are from overseas. If to maintain the selling prices to be attractive...the only way is to cut construction costs.
http://www.channel8news.sg/news8/ca/moneyweek/episodes/20170706-mw-tx3/3760422.html?cid=c8n%3Afb%3Ana%3Ana
Yes, so those who continue to wait for lower prices, you know what they are waiting for.
More units at the expense of common space like carpark lots, lesser facilities, maximised balconies and ledges.
It was noted that most of the winners of the land bids are from overseas. If to maintain the selling prices to be attractive...the only way is to cut construction costs.
http://www.channel8news.sg/news8/ca/moneyweek/episodes/20170706-mw-tx3/3760422.html?cid=c8n%3Afb%3Ana%3Ana
It was noted that most of the winners of the land bids are from overseas. If to maintain the selling prices to be attractive...the only way is to cut construction costs.
http://www.channel8news.sg/news8/ca/moneyweek/episodes/20170706-mw-tx3/3760422.html?cid=c8n%3Afb%3Ana%3Ana
Why can't they sell high, Singapore so cheap compare to other city.
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