http://www.businesstimes.com.sg/arch...lysts-20130202
Published February 02, 2013
Too soon to bet on plot ratio hikes: analysts
MND says it will look at intensifying land use only where infrastructure can support it; opinion divided over impact on collective sales
By Kalpana Rashiwala
THE Ministry of National Development (MND) has indicated in its Land Use Plan that intensifying use of land would be one strategy to support a larger population.
Although it plans to optimise land use where possible, it will look at the possibility of intensification only where it can be supported by planned infrastructure capacity (such as roads and MRT stations) and the provision of adequate amenities (such as retail, and food and beverage outlets). "We also seek to ensure we can safeguard a good liveable environment for the neighbourhood when reviewing the suitability and feasibility of intensification," MND said in response to BT's queries.
Some property consultants are not counting on any general increase in plot ratios for private housing sites fanning a new wave of collective sales for the ongoing review of the Master Plan, following MND's recent release of its Land Use Plan.
Tan Hong Boon, regional director (investments) at Jones Lang LaSalle (JLL), said: "Based on my experience with the previous two Master Plans, my reading is that plot ratio increases for privately held residential land will be very selective. In most cases, private land is in established housing estates, so the possibility of expanding the infrastructure will be quite limited.
"Plot ratio increases are more likely to be accorded to Government Land Sale (GLS) sites near new MRT stations where the authorities would have left wide roads to support a subsequent increase in live-in population."
Savills Singapore deputy managing director Steven Ming said: "We don't rule out that plot ratio increases to intensify the use of private land surrounding essential transport nodes could be on the cards - but we can only speculate." He added: "Property owners should refrain from being overzealous over these speculations and launching into an en bloc fever. Let's wait and see what surfaces in the coming Master Plan. Morever, the authorities have laid out several proposed plans for the expansion of existing towns and opening of new towns islandwide under the Land Use Plan. These will deliver diverse housing and development options for home buyers and developers alike."
A veteran property consultant who declined to be named said: "There is no urgent need to raise plot ratios as there's still plenty of unused land in Singapore - for example after Tagore Industrial Estate up to Seletar Expressway, the stretch from Thomson Road to Old Upper Thomson Road, and also beyond Mandai Zoo.
Putting things into perspective, CBRE executive director Jeremy Lake notes that "in general, collective sales are not easy to do as a result of the latest cooling measures which have made it harder for foreigners, PRs as well as some Singaporean investors to find replacement properties because of the penal tax rates and tougher financing arrangements when they buy replacement properties".
But some market watchers such as SLP International executive director Nicholas Mak believe that some older industrial spaces in the city-fringe area could be rezoned to residential or commercial uses. "These could result in en bloc sales of these older industrial properties."
JLL's Mr Tan reckons another possibility is that the URA could retain industrial zoning for some older industrial estates near the city but nevertheless advise such property owners of its intention to allow conversion of their land to residential use upon redevelopment.
"Such owners can then apply for a conversion subject to a rezoning of the prevailing Master Plan. Of course they can expect to pay hefty development charges in exchange for this right."
With the Land Use Plan out, the Master Plan - the blueprint for Singapore's physical development and which contains details such as approved use and plot ratio for each site in Singapore - is expected to be completed in around a year's time.
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