14,100 potential private homes under GLS 1H2012

[reporter2]

http://www.straitstimes.com/PrimeNew...ry_742378.html

Coming up: Sites for 14,100 new homes

Published on Dec 8, 2011

By Cheryl Lim

Plum reserve list sites

AS MANY as 14,100 new private homes can be built on sites that are being offered on the government land sales (GLS) programme for the first half of next year.

The Ministry of National Development (MND) has listed 14 confirmed sites and 27 reserve list plots as it moves to keep up the supply of development land to meet demand.

There are also sites listed for hotels and commercial development and white sites, which can be used for any purpose.

The list was released on the day that tighter measures were announced to dampen demand.

A notable factor yesterday was the relatively larger proportion of sites on the reserve list, allowing a steady supply of land while reducing the risk of oversupply in the mass market segment.

All 14 confirmed list sites - five are for executive condominiums (ECs) - are for private homes and could accommodate around 7,000 units, including 2,900 executive condominium units.

There is a mixed bag on the 27-strong reserve list. These sites go on sale once a developer makes an offer above a certain trigger point while those on the confirmed list are released for sale according to a schedule.

There are 15 residential plots on the reserve list, including one for executive condominiums, which could yield 7,100 homes in all.

It also includes two commercial and two white sites and eight plots for hotels that could mean around an extra 4,800 rooms. These sites can yield about 218,000 sq m of gross floor area of commercial space.

With the confirmed list for the first six months of next year expected to yield about 7,000 units, this will be less than the 8,100 homes from the confirmed list sites for the second half of this year.

MND said that it reduced the numbers because of the 81,600 new homes already in the pipeline of which about 41,000 remain unsold.

It also expects that demand for new homes could be affected by the stamp duty levies announced yesterday.

Analysts noted that suburban sites dominate the confirmed list, with residential plots in Punggol, Pasir Ris, Tampines and Upper Serangoon.

'It's not surprising because these sites are aimed at catering to first-time private property purchasers, typically from the HDB upgraders market,' said Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate.

Land for ECs, a hybrid of private and public housing, also features prominently on the confirmed list, reflecting their popularity among buyers, said property experts.

This is especially since revisions to the buyers' income ceiling announced earlier this year allow more people to qualify for such housing.

The confirmed list plot at the junction of Upper Serangoon Road and Pheng Geck Avenue will be a choice pick for developers, said analysts, due to its proximity to Potong Pasir MRT station.

The reserve list has its share of goodies as well. Industry experts have tipped that developers will chase the one at the corner of Farrer and Lutheran Roads, and the plot at the junction of Tiong Bahru and Kim Tian Roads.

'The Farrer Road site is smaller and could be an attractive option for smaller developers. The Tiong Bahru site isn't too bad either, especially since it's within walking distance to the Tiong Bahru MRT station,' said Mr Nicholas Mak, head of research at SLP International.

Only two sites in the second half of this year's GLS programme have been allocated for office development, both on the reserve list. One is at Marina View and another at the corner of Sims Avenue and Tanjong Katong Road.

MND said yesterday the decision to put office sites on the reserve list was because of the already large supply of office space in the pipeline.

It added that the potential office supply on the upcoming reserve list will provide opportunities for developers to act if there is demand.

[reporter2]

http://www.todayonline.com/Business/...der-GLS-1H2012

14,100 potential private homes under GLS 1H2012

10:38 PM Dec 07, 2011


SINGAPORE - The Government Land Sales (GLS) Programme for the first half of 2012 (1H2012) will comprise 14 Confirmed List sites and 27 Reserve List sites.

These sites can yield about 14,100 private residential units, including 3,500 Executive Condominium (EC) units, 218,000 sqm gross floor area (GFA) of commercial space and 4,800 hotel rooms.

The Ministry of National Development (MND) announced this on Wednesday.

All 14 Confirmed List sites are for private residential developments, including five EC sites. These sites can yield about 7,000 residential units (including 2,900 EC units).

Of the 27 sites in the Reserve List, 15 are residential sites (including one EC site), two are commercial sites, two are white sites and eight are hotel sites. These sites can yield about 7,100 private residential units, 218,000 sqm GFA of commercial space and 4,800 hotel rooms.

The potential yield of about 7,000 residential units from the 14 Confirmed List sites set aside for private residential developments is slightly less than the 8,100 units in the second half 2011 (2H2011) Confirmed List.

The MND said that in deciding on this supply, it has taken into consideration the large supply of 81,600 private residential units (including 5,300 EC units) that are already available in the pipeline as at the third quarter of 2011 as well as the possible moderation in investment demand for private housing due to Wednesday's announcement of an Additional Buyer's Stamp Duty (ABSD).

The ABSD of between 3 per cent and 10 per cent will be imposed on certain categories of residential property purchases. It will be imposed over and above the current Buyer's Stamp Duty. The ABSD will be effective from December 8.

Most of the private residential sites in the 1H2012 GLS Programme, including the 15 sites on the Reserve List, are located in the Outside Central Region or in locations in the Rest of Central Region where more affordable private housing is expected to be built.

The 1H2012 Reserve List will have two sites for office development. The first is the white site at Marina View, which is already available in the 2H2011 Reserve List. This site will be carried over to the 1H2012 Reserve List.

The commercial site at Sims Avenue/Tanjong Katong Road, which was put up for tender under the 2H2011 Confirmed List but was not awarded, will also be added to the 1H2012 Reserve List.

The MND said it is not releasing any site for office development via the Confirmed List in 1H2012, as there is already a large supply of office space in the pipeline, amounting to 933,000 sqm GFA.

A significant portion of the pipeline office space supply, about 410,000 sqm GFA, is located outside the Central Area. These developments at Buona Vista, Jurong Gateway and Paya Lebar will sustain the government's plans to decentralize work places to the regional centres and will add to the supply of more affordable office space for businesses which do not need to be in the Central Business District, said the MND.

In addition, there is more supply from projects that are pending approvals such as at Choon Guan Street and the six plots of land at Marina Bay and Ophir Road/Rochor Road by M+S Pte Ltd .

Together, these projects are estimated to add another 400,000 to 500,000 sqm GFA of office space. The potential office supply in the 1H2012 Reserve List will provide opportunities for developers to trigger more office supply if there is demand, said the MND.

As for the supply of hotel rooms, the 1H2012 GLS Programme will include two new hotel sites at Jurong Town Hall Road and East Coast Road.

Together with the existing sites carried over from the 2H2011 GLS Programme, these two new hotel sites on the Reserve List will provide ample opportunities for developers to initiate additional supply of hotel rooms over and above the pipeline supply of about 11,000 hotel rooms as at the third quarter of 2011, said the MND. CHANNEL NEWSASIA