New Reporter
11-12-23, 14:09
River Valley, Queenstown, Pasir Ris housing sites expected to be top draws in H1 2024 land sales
Dec 06, 2023
TEN new sites will be on offer under the Government Land Sales (GLS) programme for private residential housing in the first half of 2024. Eight are on the confirmed list, and two on the reserve list.
The confirmed list includes a parcel in the prime central area of River Valley, one along Margaret Drive in the Queenstown area, and an executive condo (EC) site in Jalan Loyang Besar, which have caught analysts’ attention.
Desirable location
The River Valley Green (Parcel A) plot spans 0.93 hectare (ha) and can yield around 380 private homes. The site has direct access to Great World MRT station, and is a stone’s throw from Singapore’s premier Orchard shopping belt. It is expected to launch in March next year.
Analysts expect strong interest in the site, given its central location and accessibility.
Previous condo launches in the vicinity include CanningHill Piers, Riviere and Irwell Hill Residences, which drew strong buyer interest, noted Christine Sun, OrangeTee & Tie’s senior vice-president of research and analytics. CanningHill Piers, for instance, sold 77 per cent of its 696 units at an average price of around S$3,000 per square foot (psf) during its launch weekend in November 2021.
The River Valley plot is also more desirable for developers than the nearby Zion Road (Parcel A) site, which launched for tender on Monday, said Lee Sze Teck, Huttons senior director of data analytics. Not only is the River Valley plot smaller, translating to a lower quantum price, developers are also not required to include long-stay serviced apartments, thereby reducing their upfront capital expenditure and risks, he said.
Still, PropNex chief executive officer Ismail Gafoor highlighted that the site has a “rather longish and irregular shape” that will probably require “more thinking outside the box when it comes to project design and development”, compared with one of a more “regular” shape.
Popular housing area
The parcel along Margaret Drive is 0.95 ha and can generate 460 homes. It is minutes away from Queenstown MRT station and includes a minimum of 500 square metres (sq m) for childcare spaces. The site is expected to launch in May 2024.
If sold, it will be the first land sale in the area since 2017, noted Tricia Song, CBRE’s research head for Singapore and South-east Asia.
In May 2017, the Stirling Road site, where 99-year leasehold Stirling Residences now stands, drew 13 bidders, with a winning bid of more than S$1 billion from Hong Kong’s Logan Property Holdings and China’s Nanshan Group. This translated to a land rate of S$1,050.70 psf per plot ratio, a record price for the Queenstown area then.
Knight Frank research head Leonard Tay said: “A new condominium development in the popular housing area of Queenstown, with some of the highest Housing & Development Board resale values, can tap into upgrader demand, through which buyers use the proceeds (from resale premiums) to transit into the private home market.”
Sole EC site
The Jalan Loyang Besar EC site, at 2.84 ha, will yield some 710 units. It is within walking distance of Pasir Ris MRT interchange, as well as shopping centres such as Pasir Ris Mall and White Sands, noted Chia Siew Chuin, JLL head of residential research, research and consultancy.
Observers predict this site will be one of the most hotly contested when it launches for tender in May 2024. For one, it is the sole EC site on the confirmed list, said Marcus Chu, chief executive officer of ERA. “(This) segment will be keenly watched by developers due to its compelling value proposition.”
For instance, competition was tight for the last EC site launched for sale in Tampines Street 62 (Parcel B). The tender drew nine bidders in October, and a top bid of S$543.28 million – working out to a record land rate of S$721 psf ppr.
OrangeTee & Tie’s Sun added that there should be strong pent-up demand in Pasir Ris, given that the last EC launched there happened in 2013, for the site of the 99-year leasehold Sea Horizon.
ECs are also the most affordable form of hybrid private homes at the moment, and therefore attract mass-market buyers, particularly among upgraders and first-home buyers, said Knight Frank’s Tay.
Moderate demand
The confirmed list supply of the H1 2024 programme features five other residential sites, including a mixed-use development in Tampines Street 94 and one in Media Circle in Buona Vista, slated for long-stay serviced apartments. They are seen to be of palatable size and are predicted to draw moderate demand.
The commercial and residential parcel in Tampines Street 94 spans 2.35 hectares, with a retail cap of 10,500 sq m and a 650 sq m minimum for childcare space. It can yield some 585 homes and is expected to launch in June 2024.
Wong Xian Yang, research head at Cushman & Wakefield, noted that the Tampines site is likely to offer the only major mall within 800 metres for the growing number of homes in the area.
This could be an appealing site for developers looking for heartland retail exposure, said PropNex’s Gafoor. “This plot could also enjoy pent-up housing demand as there have been no GLS sites nearby for some 20 years, since the award of the Bay Water residential site along Bedok Reservoir Road in December 2000.”
Other sites on the confirmed list are a plot in Canberra Crescent for 375 homes, one in Dairy Farm Walk for 530 homes, and another in Tengah Garden Avenue for 860 homes.
Reserve list
The two new sites on the reserve list of the H1 2024 GLS Programme are a plot in River Valley Green for 575 homes, and one in Bayshore Road. Sites on the reserve list are put up for sale only if a developer’s indicated minimum price in their application is acceptable to the government.
Between the two, market watchers believe that the Bayshore Road parcel is more likely to be triggered for tender.
Wong pointed out that the site will be the first private housing land sale in the area. He expects keen interest from developers and buyers because of its proximity to East Coast Park and the upcoming Bayshore MRT station.
“Developers would be looking to get a first-mover advantage in this precinct,” he said. “However, with about 3,000 private residential units expected to be built in the Bayshore precinct, future market competition could potentially be stiff.”
The Bayshore Road site could also pique the interest of developers, knowing that the project can be sold at a premium, given the development of the Long Island reclamation and development off the eastern coast of Singapore, said Tay.
Altogether, this latest round of the GLS programme for the first half of 2024 is projected to boost the supply of private homes, including executive condos, by 5.6 per cent to 5,450, from 5,160 units in H2 2023. Of the 5,450 units, 1,035 were carried forward from the H2 2023 GLS Programme and 4,415 are from new sites.
This is the highest supply on the confirmed list since H2 2013, noted Wong.
Chia from JLL said: “The supply count continues to maintain an ample allocation for private housing, but refrains from oversaturating the market, keeping in mind the forthcoming projects in the immediate term.”
This will regulate bids and land prices, said ERA’s Chu. “It also signals to homebuyers that the government is committed to ensuring sufficient supply to keep prices in check.”
https://i.imgur.com/eIkauPY.png
The River Valley Green (Parcel A) site on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/M0wBynk.png
The Canberra Crescent land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/rtD8d01.png
The Jalan Loyang Besar executive condo site site on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/woiYjFG.png
The Media Circle land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/un8OeUc.png
The Margaret Drive land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/EbK8DKN.png
The Dairy Farm Walk land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/qqireP7.png
The Tengah Garden Avenue land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/EDfp1tQ.png
The Tampines Street 94 land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/PD5ic1W.png
The Bayshore Road land parcel on the reserve list under the H1 2024 GLS Programme. PHOTO: URA
https://www.businesstimes.com.sg/property/river-valley-queenstown-pasir-ris-housing-sites-expected-be-top-draws-h1-2024-land-sales
Dec 06, 2023
TEN new sites will be on offer under the Government Land Sales (GLS) programme for private residential housing in the first half of 2024. Eight are on the confirmed list, and two on the reserve list.
The confirmed list includes a parcel in the prime central area of River Valley, one along Margaret Drive in the Queenstown area, and an executive condo (EC) site in Jalan Loyang Besar, which have caught analysts’ attention.
Desirable location
The River Valley Green (Parcel A) plot spans 0.93 hectare (ha) and can yield around 380 private homes. The site has direct access to Great World MRT station, and is a stone’s throw from Singapore’s premier Orchard shopping belt. It is expected to launch in March next year.
Analysts expect strong interest in the site, given its central location and accessibility.
Previous condo launches in the vicinity include CanningHill Piers, Riviere and Irwell Hill Residences, which drew strong buyer interest, noted Christine Sun, OrangeTee & Tie’s senior vice-president of research and analytics. CanningHill Piers, for instance, sold 77 per cent of its 696 units at an average price of around S$3,000 per square foot (psf) during its launch weekend in November 2021.
The River Valley plot is also more desirable for developers than the nearby Zion Road (Parcel A) site, which launched for tender on Monday, said Lee Sze Teck, Huttons senior director of data analytics. Not only is the River Valley plot smaller, translating to a lower quantum price, developers are also not required to include long-stay serviced apartments, thereby reducing their upfront capital expenditure and risks, he said.
Still, PropNex chief executive officer Ismail Gafoor highlighted that the site has a “rather longish and irregular shape” that will probably require “more thinking outside the box when it comes to project design and development”, compared with one of a more “regular” shape.
Popular housing area
The parcel along Margaret Drive is 0.95 ha and can generate 460 homes. It is minutes away from Queenstown MRT station and includes a minimum of 500 square metres (sq m) for childcare spaces. The site is expected to launch in May 2024.
If sold, it will be the first land sale in the area since 2017, noted Tricia Song, CBRE’s research head for Singapore and South-east Asia.
In May 2017, the Stirling Road site, where 99-year leasehold Stirling Residences now stands, drew 13 bidders, with a winning bid of more than S$1 billion from Hong Kong’s Logan Property Holdings and China’s Nanshan Group. This translated to a land rate of S$1,050.70 psf per plot ratio, a record price for the Queenstown area then.
Knight Frank research head Leonard Tay said: “A new condominium development in the popular housing area of Queenstown, with some of the highest Housing & Development Board resale values, can tap into upgrader demand, through which buyers use the proceeds (from resale premiums) to transit into the private home market.”
Sole EC site
The Jalan Loyang Besar EC site, at 2.84 ha, will yield some 710 units. It is within walking distance of Pasir Ris MRT interchange, as well as shopping centres such as Pasir Ris Mall and White Sands, noted Chia Siew Chuin, JLL head of residential research, research and consultancy.
Observers predict this site will be one of the most hotly contested when it launches for tender in May 2024. For one, it is the sole EC site on the confirmed list, said Marcus Chu, chief executive officer of ERA. “(This) segment will be keenly watched by developers due to its compelling value proposition.”
For instance, competition was tight for the last EC site launched for sale in Tampines Street 62 (Parcel B). The tender drew nine bidders in October, and a top bid of S$543.28 million – working out to a record land rate of S$721 psf ppr.
OrangeTee & Tie’s Sun added that there should be strong pent-up demand in Pasir Ris, given that the last EC launched there happened in 2013, for the site of the 99-year leasehold Sea Horizon.
ECs are also the most affordable form of hybrid private homes at the moment, and therefore attract mass-market buyers, particularly among upgraders and first-home buyers, said Knight Frank’s Tay.
Moderate demand
The confirmed list supply of the H1 2024 programme features five other residential sites, including a mixed-use development in Tampines Street 94 and one in Media Circle in Buona Vista, slated for long-stay serviced apartments. They are seen to be of palatable size and are predicted to draw moderate demand.
The commercial and residential parcel in Tampines Street 94 spans 2.35 hectares, with a retail cap of 10,500 sq m and a 650 sq m minimum for childcare space. It can yield some 585 homes and is expected to launch in June 2024.
Wong Xian Yang, research head at Cushman & Wakefield, noted that the Tampines site is likely to offer the only major mall within 800 metres for the growing number of homes in the area.
This could be an appealing site for developers looking for heartland retail exposure, said PropNex’s Gafoor. “This plot could also enjoy pent-up housing demand as there have been no GLS sites nearby for some 20 years, since the award of the Bay Water residential site along Bedok Reservoir Road in December 2000.”
Other sites on the confirmed list are a plot in Canberra Crescent for 375 homes, one in Dairy Farm Walk for 530 homes, and another in Tengah Garden Avenue for 860 homes.
Reserve list
The two new sites on the reserve list of the H1 2024 GLS Programme are a plot in River Valley Green for 575 homes, and one in Bayshore Road. Sites on the reserve list are put up for sale only if a developer’s indicated minimum price in their application is acceptable to the government.
Between the two, market watchers believe that the Bayshore Road parcel is more likely to be triggered for tender.
Wong pointed out that the site will be the first private housing land sale in the area. He expects keen interest from developers and buyers because of its proximity to East Coast Park and the upcoming Bayshore MRT station.
“Developers would be looking to get a first-mover advantage in this precinct,” he said. “However, with about 3,000 private residential units expected to be built in the Bayshore precinct, future market competition could potentially be stiff.”
The Bayshore Road site could also pique the interest of developers, knowing that the project can be sold at a premium, given the development of the Long Island reclamation and development off the eastern coast of Singapore, said Tay.
Altogether, this latest round of the GLS programme for the first half of 2024 is projected to boost the supply of private homes, including executive condos, by 5.6 per cent to 5,450, from 5,160 units in H2 2023. Of the 5,450 units, 1,035 were carried forward from the H2 2023 GLS Programme and 4,415 are from new sites.
This is the highest supply on the confirmed list since H2 2013, noted Wong.
Chia from JLL said: “The supply count continues to maintain an ample allocation for private housing, but refrains from oversaturating the market, keeping in mind the forthcoming projects in the immediate term.”
This will regulate bids and land prices, said ERA’s Chu. “It also signals to homebuyers that the government is committed to ensuring sufficient supply to keep prices in check.”
https://i.imgur.com/eIkauPY.png
The River Valley Green (Parcel A) site on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/M0wBynk.png
The Canberra Crescent land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/rtD8d01.png
The Jalan Loyang Besar executive condo site site on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/woiYjFG.png
The Media Circle land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/un8OeUc.png
The Margaret Drive land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/EbK8DKN.png
The Dairy Farm Walk land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/qqireP7.png
The Tengah Garden Avenue land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/EDfp1tQ.png
The Tampines Street 94 land parcel on the confirmed list under the H1 2024 GLS Programme. PHOTO: URA
https://i.imgur.com/PD5ic1W.png
The Bayshore Road land parcel on the reserve list under the H1 2024 GLS Programme. PHOTO: URA
https://www.businesstimes.com.sg/property/river-valley-queenstown-pasir-ris-housing-sites-expected-be-top-draws-h1-2024-land-sales