Results 1 to 10 of 10

Thread: Govt offers fewer confirmed sale sites in uncertain mkt

  1. #1
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Govt offers fewer confirmed sale sites in uncertain mkt

    http://www.straitstimes.com/Latest%2...ry_249536.html

    June 19, 2008

    Govt offers fewer confirmed sale sites in uncertain mkt


    THE Government is cutting back on the number of development sites being releasing for outright sale over the next six months.

    Its move follows poor sales of the 37 sites that have been available since the start of the this year.

    Only five sites on the confirmed list have been sold while four other plots on this list have yet to be sold or launched.

    None of the 26 sites on the reserve list have been triggered for tender.

    These sites go on sale only if a developer makes a minimum bid.

    Read the full story in Friday's edition of The Straits Times.

  2. #2
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Some 7,960 private residential units to be built in second half of 2008

    http://www.channelnewsasia.com/stori...355136/1/.html

    Some 7,960 private residential units to be built in second half of 2008

    Posted: 19 June 2008 1635 hrs


    SINGAPORE: The government will release enough land to build about 7,960 private residential units in the second half of this year.

    The sites will also produce 400,000 square metres of gross floor area of commercial space and 5,750 hotel rooms.

    The details were released by the Ministry of National Development (MND) on Thursday when it announced the Government Land Sales (GLS) programme for the second half of 2008.

    Under the latest programme, two new sites will transform the Jurong Lake District and Kallang Riverside into a destination for work, life and play.

    And as part of the government's drive to open new growth areas, a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway.

    In total, 13 new sites have been added to the land sales programme. These comprise six residential, three commercial, three hotels and one white.

    26 unsold sites from the first half of 2008 and one unsold site from the second half of 2007 will be carried over to the second half land sales programme.

    This means there are 40 sites in total for sale in the second half. These comprise 21 residential sites that can yield about 7,960 private residential units, six commercial sites which make up 400,000 square metres gross floor area, 11 hotel sites that can produce 5,750 hotel rooms and two white sites.

    Eight sites will be sold under the confirmed list - of which six are new and two are carried over. The six new ones include three commercial sites which are the existing Capitol Theatre, Capitol Building, Stamford House and Capitol Centre.

    Both Capitol Building and Stamford House have been gazetted for conservation. The other commercial sites are at Mohamad Sultan Road and Mountbatten Road.

    Meanwhile, two new residential sites have been released at Yio Chu Kang Road and Sembawang Greenvale. There is also a confirmed hotel site at Bukit Chermin Road.

    A total of 32 sites will be placed on the reserve list for the second half of this year. Seven are new while 24 were carried over. The reserve list includes two hotel sites at Kallang River and Short Street.

    MND said this will provide flexibility for the market to adjust the supply to meet the demand. - CNA/vm

  3. #3
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Fewer confirmed Govt sites put up for sale

    http://www.straitstimes.com/Money/St...ry_249767.html

    June 20, 2008

    Fewer confirmed Govt sites put up for sale

    Only eight sites for outright sale; move follows poor sales in first half of year

    By Joyce Teo, Property Correspondent


    THE Government is cutting back on the number of development sites being released for outright sale over the next six months.

    The move follows poor sales of the 37 sites that have been available since the start of the year.

    Only five sites on the confirmed list have been sold while four other plots have yet to be sold or launched.

    None of the 26 sites on the reserve list has been put up for tender. These sites go on sale only if a developer makes a minimum bid.

    The Government decided not to award one residential site as the bids were too low, and it withdrew an unsold hotel plot in Race Course Road after it failed to attract an offer.

    CBRE Research executive director Li Hiaw Ho said: 'Given the (economic) uncertainty, the Government appears to be responding to feedback by allowing developers to decide on the pace of development through the reserve list.'

    Even with the reduced number of new sites for the second half, developers will still have a wide choice.

    In addition to the 13 new sites, there will be 27 carried over from the first half of the year. Of this batch of 40 plots, eight are on the confirmed list, with the rest on reserve.

    'The existing supply is more than adequate to meet the market's medium-term needs and to address the Government's concern about supply,' said a developer.

    'In such a volatile and uncertain market, force-feeding the market with a large, confirmed list may create opportunistic bids that are not indicative of true values.'

    Chesterton International's head of research and consultancy, Mr Colin Tan, said the Government is forcing developers to be more reasonable with their pricing by pushing out sites on the confirmed list.

    'While the overall numbers do suggest there is a good chance of a glut occurring, there are also pockets of pent-up residential demand, especially among owner-occupiers.'

    If all the residential sites stay on the reserve list, developers can opt not to bid. But with no cheaper alternatives in the pipeline, homebuyers may have to stretch themselves and fork out the premiums demanded by developers, said Mr Tan.

    There are 21 residential sites for sale, similar to the first six months, but just four are on the confirmed list. There were eight in the first half of the year.

    There are some prime sites on the reserve list, including at Serangoon Avenue and Dakota Crescent, which are near new MRT stations.

    Ms Tay Huey Ying of Colliers International said: 'Despite the attractiveness of these sites, they may not be triggered for sale in view of the subdued sentiment.'

    But Mr Nicholas Mak, Knight Frank's director of research and consultancy, said the reserve list sites will help to ensure flexibility in the sales programme if the market picks up later this year.

    [email protected]
    Attached Files Attached Files

  4. #4
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Developers get more wriggle room with H2 land sales

    http://www.businesstimes.com.sg/sub/...84355,00.html?

    Published June 20, 2008

    Developers get more wriggle room with H2 land sales

    Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up

    By KALPANA RASHIWALA

    Click here for URA's news release

    (SINGAPORE) The government yesterday effectively delivered a sharp cut in state land sales that should give some relief to the current soft property market. Supply from the confirmed list of the Ministry of National Development's (MND) H2 2008 land sales programme is less than half that in H1.

    Although the supply on the H2 reserve list has been increased so that the total on both lists is about the same as in H1, market watchers reckoned that it is a fair bet that not many reserve list sites will be triggered for release.

    Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.

    'With most sites in the Government Land Sales Programme on the reserve list, the government will allow the market to activate supply in accordance with actual demand,' the Urban Redevelopment Authority (URA) said when queried about the latest programme.

    Agreeing, CB Richard Ellis executive director Li Hiaw Ho said: 'Given the uncertainty in the wider market and the global economy, the government appears to be responding to feedback by allowing developers to decide the pace of development through the reserve list.'

    In all, MND is offering 40 sites in H2. Eight are on the confirmed list, down from 11 in H1, and 32 are on the reserve list, up from 26.

    The latest confirmed list will yield about 1,120 private homes, 50,000 square metres of gross floor area (GFA) of commercial space and 700 hotel rooms. This is less than half the H1 confirmed list supply of 3,000 private homes, 176,581 sq m of commercial GFA and 1,670 hotel rooms.

    The overall H2 programme will generate 7,960 private homes, 400,000 sq m of commercial GFA and 5,750 hotel rooms.

    This is similar to the H1 quantum - 8,250 private homes, 436,581 sq m of commercial GFA and 5,850 hotel rooms.

    'The government is mindful of current market conditions,' said DTZ executive director Ong Choon Fah. 'They've announced a very measured programme, so as not to upset the market.'

    However, one area of concern is MND's decision to release another two 15-year leasehold transitional office sites through the confirmed list - at Mohamed Sultan and Mountbatten roads. Market watchers are concerned that the completion of developments on further transitional sites will come closer and closer to the completion of major office projects such as Marina Bay Financial Centre, 50 Collyer Quay and Ocean Financial Centre.

    URA, however, said that it has received market feedback that there is demand for transitional office sites from businesses that need office space urgently but not a city centre location.

    The two plots are among 13 new sites MND is offering on its H2 slate of 40 plots. A plum new site comprises the existing Capitol Theatre, Capitol Building, Stamford House (all gazetted for conservation) and Capitol Centre, which may be torn down and redeveloped. A minimum quantum for hotel use will be stipulated. Another choice new site on the confirmed list is a hotel plot on Bukit Chermin Road next to Keppel Club. The three hectare site includes four black-and-white bungalows on hilly terrain. 'The sale of this site for hotel development is timed to coincide with the completion of the Labrador Nature and Coastal Walk nearby in 2011,' MND said.

    It is also offering subdivided landed housing plots under the third phase of Sembawang Greenvale.

    New plots on the reserve list include a white site next to Jurong East MRT Station, which will have a minimum office component and could also generate about 385 homes, and two hotel sites - one a beachfront plot along Kallang River and the other on Short Street in the Selegie area. Several new condo sites are also on the reserve list - including one next to Lorong Chuan MRT Station and another next to the Dakota Residences project, which will be previewed tomorrow.

    MND also highlighted additional sources of space that the government will make available in H2 2008 - including about 143,000 sq m GFA of commercial space from sources such as interim use of vacant state buildings and small land parcels for commercial use; retail space at the mixed-used development at Lavender Street by JTC Corp; about 240 hotel rooms; and 20 private homes.

    Giving an update on the supply pipeline, MND said that about 1.11 million sq m of GFA of office space, 435,000 sq m of business park space, 565,000 sq m of shop space and 11,161 hotel rooms are scheduled for completion between Q2 2008 and 2011.

    In the private residential sector, some 56,500 new private homes are expected to be ready between Q2 2008 and 2011, of which 23,300 are in the Core Central Region.



  5. #5
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Choice GLS sites could still generate interest

    http://www.businesstimes.com.sg/sub/...84358,00.html?

    Published June 20, 2008

    Choice GLS sites could still generate interest

    Market conditions may lead to more developers bidding 'opportunistically', says Chesterton

    By ARTHUR SIM


    (SINGAPORE) The Government Land Sales (GLS) programme for H2 2008 has been released, with several new choice sites identified, including those at Dakota Crescent and Serangoon Avenue 3. And with land prices expected to be more attractive, the momentum of land sales could still be maintained.

    While no sites on the reserve list were triggered from the H1 2008 GLS programme, four non-landed sites on the confirmed list were sold, with a further two sites tendered and pending award.

    And compared with the eight sites that were awarded from the H2 2007 GLS programme, of which five were from the confirmed list, it would appear that the global economic slowdown has not stopped developers from buying land, as long as the price is right.

    For the H1 2008 GLS programme, a site at Choa Chu Kang Drive was awarded to the highest bidder with a bid of $203 per square foot per plot ratio (psf ppr), even though market expectations were higher at between $230 and $270 psf ppr.

    Chesterton International head of research and consultancy Colin Tan believes that current market conditions could lead to more developers bidding 'opportunistically'.

    So far, a site at Choa Chu Kang Road was not awarded this year because the top bid of $162.40 psf ppr was considered too low. Also this year, a landed housing site at Westwood Avenue was not awarded for similar reason.

    But pinpointing the bottom in terms of property prices will not be easy. Mr Tan said: 'Prices are weakening but not in a great way because the volume is low.'

    Mr Tan reckons that apart from the sites mentioned, the site at New Upper Changi Road also looks attractive, not least because it has been carried over from the previous reserve list and is now on the confirmed list.

    The Urban Redevelopment Authority (URA) also revealed how keen it is to sell the site when it said in a statement yesterday that the sale of the site 'will expedite the development of land around the (nearby) Rapid Transit System station(s) and help to increase the ridership catchment for the rail system'.

    Knight Frank estimates that this site could eventually fetch bids of between $240 and $280 psf ppr.

    Interestingly, the URA also demonstrated that it was prepared to expedite the sale of sites when it repackaged a reserve list site on Yio Chu Kang Road and put it on the confirmed list after saying it had 'received market feedback that a larger residential site with a small component of commercial space is more attractive than the original smaller commercial and residential site with a limited number of residential units'.

    The forthcoming site at Dakota Crescent, which is expected to be available in November, is likely to receive a lot of interest too, especially as it is close to the new urban hot spot - Kallang Riverside - as identified in the Draft Master Plan 2008.

    It is also next to Dakota Residences, which is being built on a GLS site that was awarded in June 2007 for $524 psf ppr.

    Saying that there could be an investment opportunity here, Knight Frank director (research and consultancy) Nicholas Mak said that given the current market conditions, the new Dakota Crescent site (from GLS H2 2008) will likely be lower compared with the land price for Dakota Residences.

    Interestingly, Mr Mak said that the profit margins need not necessarily be slimmer now. 'The market could pick up over the next two years. Developers may also be factoring in a higher profit margin to compensate for the higher risks today.'

    Also favouring the Dakota Crescent site as a 'top pick' is Savills Singapore director (marketing and business development) Ku Swee Yong, who believes that bids for the site when it is launched eventually could be between $350 and $400 psf ppr.

    'Given the current market conditions, developers are prepared to err on the side of caution,' he added.

    However, Mr Ku did also pointed out that much will depend on how well Dakota Residences does when it is launched soon. The indicative launch price is said to be around $950 psf.

    Another plum site is a white site at Jurong East Street 13, in what is expected to be a new sub-metropolitan centre called Jurong Gateway.

    The site can yield an estimated 385 residential units, but the URA has also stipulated that 63,840 square metres of space must be set aside for commercial use.



  6. #6
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default


  7. #7
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default 13 new sites added to Government Land Sales programme for H2

    http://www.channelnewsasia.com/stori...355136/1/.html

    13 new sites added to Government Land Sales programme for H2

    Posted: 19 June 2008 1635 hrs


    SINGAPORE: The Ministry of National Development (MND) on Thursday announced the Government Land Sales (GLS) programme for the second half of 2008.

    Under the latest programme, two new sites will transform the Jurong Lake District and Kallang Riverside into a destination for work, life and play.

    And as part of the government's drive to open new growth areas, a new white site at Jurong East St 13 has been set aside to kickstart the development of a commercial hub at Jurong Gateway.

    In total, 13 new sites have been added to the land sales programme. These comprise six residential, three commercial, three hotels and one white.

    26 unsold sites from the first half of 2008 and one unsold site from the second half of 2007 will be carried over to the second half land sales programme.

    This means there are 40 sites in total for sale in the second half. These comprise 21 residential sites that can yield about 7,960 private residential units, six commercial sites which make up 400,000 square metres gross floor area, 11 hotel sites that can produce 5,750 hotel rooms and two white sites.

    Eight sites will be sold under the confirmed list - of which six are new and two are carried over. The six new ones include three commercial sites which are the existing Capitol Theatre, Capitol Building, Stamford House and Capitol Centre.

    Both Capitol Building and Stamford House have been gazetted for conservation. The other commercial sites are at Mohamad Sultan Road and Mountbatten Road.

    Meanwhile, two new residential sites have been released at Yio Chu Kang Road and Sembawang Greenvale. There is also a confirmed hotel site at Bukit Chermin Road.

    A total of 32 sites will be placed on the reserve list for the second half of this year. Seven are new while 24 were carried over. The reserve list includes two hotel sites at Kallang River and Short Street.

    MND said this will provide flexibility for the market to adjust the supply to meet the demand. - CNA/vm/ac

  8. #8
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Low demand, so fewer govt sites for sale

    http://www.straitstimes.com/News/Hom...ry_250447.html

    June 22, 2008

    Low demand, so fewer govt sites for sale

    By Nicholas Fang


    The Government's latest half-yearly release of land for sale takes into consideration current low demand, but also anticipates a possible recovery in the medium or long term.

    National Development Minister Mah Bow Tan said that the Government's decision to cut back on the number of development sites being released for outright sale in the second half of this year reflected feedback from the market.

    'Demand is currently slow and the market is quiet, so based on feedback we received, we decided to reduce the supply,' he said on the sidelines of a dialogue in Tampines yesterday.

    The Government announced on Thursday that only eight sites would be put up for outright sale in the next six months following poor interest in the 37 sites that have been available since the start of the year.

    Of the 11 sites on the confirmed list, five sites have been sold, tenders for three sites have not closed and one site has not been launched. The other two were not sold.

    The remaining 26 sites on the reserve list were not released for sale. These sites go on sale only if a developer makes a minimum bid.

    For the second half of the year, 13 new sites were added, with 27 carried over from the first six months.

    Of this batch of 40, eight are on the confirmed list with the rest on reserve.

    Despite the flagging demand at the moment, Mr Mah said: 'There may be some demand that could be waiting on the sidelines that we do not know about.

    'So we have to make sure that there is enough supply in the medium term.'

    And while the Government does not want to put pressure on the market by flooding it with a supply of space in the short term, Mr Mah believed that land on the reserve list would meet requirements in the months ahead.

    'In the medium term, based on Singapore's projected economic growth, population growth and demand for hotels and offices, we have worked to make sure that there will be enough supply on the reserve list.

    'We want steady and sustainable growth,' he said.

  9. #9
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Govt adopts more 'measured' approach in latest land sales programme, says Mah Bow Tan

    http://www.channelnewsasia.com/stori...355569/1/.html

    Govt adopts more 'measured' approach in latest land sales programme, says Mah Bow Tan

    By Imelda Saad, Channel NewsAsia | Posted: 21 June 2008 2341 hrs


    SINGAPORE : The National Development Minister, Mah Bow Tan, said the government decided on a more measured approach in its latest land sales programme, taking into account the country's medium to long-term needs.

    Speaking on the sidelines of a community event, he said the strategy is to ensure that there's sufficient land set aside for development in the medium term, while at the same time, not forcing supply into the market.

    13 new sites have been added, bringing the total number of sites earmarked for sale now to 40. The actual number of confirmed residential sites has also been cut - from eight in the first half to only four in the second half.

    Analysts said this suggests a more prudent stance by the government, given the current cautious market environment.

    Mr Mah however pointed out that taking both the confirmed and reserved list in total, there is sufficient stock in case demand goes up again.

    "Right now, the demand is fairly slow and the market is fairly quiet, reflecting the... uncertainties in the economy. But there may be some demand waiting at the sidelines, we don't know... If confidence returns fairly quickly, it's possible for all these reserve sites to be triggered," said Mr Mah. - CNA /ls

  10. #10
    Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Analysts' views mixed over H2 GLS list

    http://www.businesstimes.com.sg/sub/...84664,00.html?

    Published June 23, 2008

    Analysts' views mixed over H2 GLS list

    Generally, they welcome more sites on the reserve list

    By LYNETTE KHOO


    THE Government Land Sales (GLS) programme for the second half of this year has triggered mixed responses from property analysts.

    While some read the moderate supply as a plus for property prices, others feel it reaffirms the weak market sentiment.

    The GLS list for the second half of 2008 sees 13 new sites - comprising six residential sites, three commercial sites, three hotel sites and one white site. That's lower than the 17 new sites released in the first half.

    Of the total 40 sites being offered in the second half, there are only eight confirmed sites, down from 11 in the first, and 32 are on the reserve list, up from 26.

    'We see the 2H08 GLS list as reflective of the current market sentiment, following softer bids and the non-award of three tenders in the last six months,' says Citi analyst Wendy Koh.

    Westcomb Research, however, views the reduced supply positively, saying that it 'will ease the current urge of developers to release their existing land bank under the current weak demand and reduce downward price pressure'.

    Property stocks were a mixed bag on Friday, with CapitaLand up 36 cents at $6.08, Keppel Land up seven cents at $5.20, and GuocoLand down 25 cents at $2.18.

    Generally, analysts welcome the market-driven approach to have more sites on the reserve list, in which sites are put up for sale only after developers have indicated interest by committing to a minimum bid.

    'It affords the market some breathing space and developers and the market should read the decrease in the confirmed list quantum positively,' says DBS Vickers analyst Adrian Chua in a report.

    Deutsche Bank notes that choice of sites was strategic in driving the development of new areas under the Master Plan 2008. The inclusion of four mass-market residential sites in the reserve list, it says, could be insurance against a sharp upswing in sentiment.

    Moreover, the lack of supply of CBD office sites should provide relief to the prime office segment and landlords, Deutsche Bank analysts say in a report. 'Muted new supply for both residential and office versus previous years should provide some relief and improve sentiment at the margin.'

    Deutsche Bank analysts have pegged a 'buy' call to City Developments and Keppel Land, but add that they continue to prefer Reits over the developers.

    DBS Vickers kept its 'overweight' rating on the property sector on belief that the second-half GLS programme 'does inspire confidence in the planning of land supply in Singapore, ensuring sustainable and steady growth in the property sector in the medium-term'.

    Its top pick among developers is City Developments for its proxy to the residential market. It has a 'buy' call on F&N for its predominantly mass-market land bank and Allgreen for its mid-tier/mass-market exposure.

    Other analysts were less sanguine. Credit Suisse analyst Tricia Song says that she continues to see negative headwinds for the Singapore property sector in the near term, given potentially rising interest rates, construction costs, supply completions and falling rents. She is keeping her 'underweight' call on the property sector, with 'underweight' ratings for City Developments and Wing Tai, but 'neutral' calls for CapitaLand, Allgreen and Keppel Land.

    For Nomura, the sound supply outlook for residential units - which the Urban Redevelopment Authority estimates to be 59,545 completed units between end-2007 and end-2011 - is 'unnerving'. It hence retained its bearish stance on the residential sector where it foresees further downside pressures in asset prices from marginal speculative sellers. It has a 'neutral' rating on City Developments and Keppel Land and a 'reduce' rating on CapitaLand.

Similar Threads

  1. Govt offers 2 more sites
    By orange in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 01-10-14, 19:12
  2. URA offers two sites at Upp Serangoon View for sale
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 30-09-13, 13:03
  3. Govt offering fewer residential sites to balance supply
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 27-06-13, 15:13
  4. Govt offers three 99-year residential sites for sale
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 20
    -: 01-04-11, 16:13
  5. HDB offers for sale 2 sites for private homes
    By mr funny in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 24-09-10, 23:14

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •