Variety of choice sites on H1 slate; seven of total 14 sites are new

The Business Times - Dec 07
The Ministry of National Development's first-half 2019 Government Land Sales supply may be subdued but still offers a selection of choice sites.

In all, there are five sites on the confirmed list and nine on the reserve list. Seven of the total 14 sites are new.

Some property consultants rate the most attractive plot as the one along Tan Quee Lan Street, on top of the Downtown Line Bugis MRT Station. It was just made available for application on the current-half reserve list but is being transferred to the H1 2019 confirmed list.

Tricia Song, Head of Research:
Among the five Confirmed List sites, three of them – Tan Quee Lan Street, Bernam Street, and Canberra Link (EC) – should garner a healthy level of interest from developers. Meanwhile, stand-out sites on the Reserve List are: Dunman Road; Marina View; Sims Avenue; and Fernvale Lane (EC).

Despite the strong demand for Executive Condos (EC) – a hybrid of public and private housing - and their dwindling supply on the market, the Government has maintained a stable supply of EC sites in the upcoming GLS, keeping pace with the private housing supply. 

The unexpected plot on the GLS H1 2019 slate is perhaps the new hotel site in Sims Avenue which will be placed on the Reserve List. We think the site will complement the Government’s plan to rejuvenate the area and transform Paya Lebar into a regional commercial hub. 

Govinda Singh, Executive Director of Valuation & Advisory Services, Asia, Colliers International:
As the development of Paya Lebar into a regional business hub gathers pace, a mid-market/four-star hotel will be ideal as a focal and meeting point for both locals and visitors alike. We would anticipate strong demand from businesses in the year, and given limited existing supply in the area, this should ensure its viability. Click here for our analysis

Private housing supply from H1 2019 land sales cut by 20%

The Business Times - Dec 07
The government has cut the private housing supply from its first-half 2019 land sales programme by 20 per cent from the current half, bringing it to the lowest level in 12 years.

Analysts say they hope this would create some breathing room for developers, in light of the significant increase in pipeline supply following the en-bloc frenzy on the one hand, and moderating demand following the July property cooling measures on the other.

The total land supply from sites in both the confirmed and reserve lists for H1 2019 can yield about 6,475 private residential units (including 910 executive condominium or EC units). This is 19.5 per cent lower than the 8,040 private residential units (including 1,210 EC units) for the current H2 2018 slate.

Tricia Song, Head of Research:
The Government has adopted a more cautious stance in its upcoming land sales programme by pulling back on land supply for the first half (H1) of 2019, owing to an ample pipeline of upcoming housing supply from sites that were sold via collective sales and public tenders.

Sites under the Government Land Sales (GLS) programme for H1 2019 can potentially offer a total of about 6,475 private residential units (under both Confirmed and Reserve Lists) – down 19.5% from 8,040 units provided for in the GLS for the second half of 2018. It is also the lowest total half-yearly supply of residential units since H1 2007, where 5,475 units were offered. Click here for our analysis.