http://www.businesstimes.com.sg/arch...-cheaper-homes
Published June 14, 2012
Land dose to quench thirst for cheaper homes
More ECs and sites in suburban areas aimed at 'sandwich class'
By michelle tan
[SINGAPORE] Satisfying the demand for more affordable private homes seems to be the government's focus in its land sales programme for the second half of 2012.
Most sites in the confirmed list of the Government Land Sales (GLS) programme announced yesterday are in the suburban Outside Central Region (OCR) and Rest of Central Region (RCR). This includes wholly private and executive condominium (EC) sites.
Said Chia Siew Chuin, Colliers International's director of research and advisory: "As expected, the government is unlikely to relent on the continued injection of land for private residential housing - given the strong demand from home buyers and the continued active participation of developers in land tenders, in which bids are generally still bullish."
ECs continue to feature strongly, with six out of the 13 residential sites (one of which is a mixed use site) on the confirmed list being allocated for such developments, potentially yielding some 3,100 EC units, slightly more than the five sites or 2,900 EC units offered in the first half of 2012.
"There has been a steady increase in EC supply under the confirmed list since 2H 2011, signifying the government's intention to provide more homes for the sandwich class," pointed out CBRE executive director Joseph Tan. He also said that injecting more EC sites could stabilise prices.
Some choice sites are up for grabs, including a private housing site along Commonwealth Avenue and a mixed-use residential site at Yishun Ring Road.
Lee Sze Teck, senior manager of DWG's research and consultancy division, said developers are likely to battle over these two sites. He said: "The Commonwealth Avenue site is considered to be the plum site as it is opposite Queenstown MRT station and within a few minutes drive to town and Orchard. The Yishun Ring Road site is also attractive as it plugs a gap in the neighbourhood as it is not near Northpoint Shopping Centre thus there is a need for amenities. Additionally, mixed use developments are also increasingly popular with buyers."
Meanwhile, a commercial site at Venture Avenue (Jurong Gateway) was also placed on the confirmed list. Industry watchers see this as a welcome move and expect the site - which will be sold with a minimum office GFA quantum - to draw interest as the government has committed to develop the district into a vibrant commercial hub.
Also within the commercial sector, the Sims Avenue/Tanjong Katong Road site on the reserve list saw some sale conditions being revised. The site's minimum hotel use requirement has been removed and some residential use allowed to give the developer greater flexibility.
For instance, the developer may choose to create an integrated office-retail-residential development, an office-retail-hotel development or an office-retail development after the change. However, single ownership for both the office and retail space will be required.
Also on offer on the reserve list will be one new commercial site along Cecil Street/Telok Ayer Street, which is presently occupied by the Telok Ayer Performing Arts Centre (which will be relocated sometime next year). One new hotel site - comprising a plot at Victoria Street/Ophir Road (formerly a wholesale market) - has also been put into the second-half's reserve list.
Yesterday, the MND announced that the confirmed list for H2 2012 will comprise a total of 12 private residential sites, a commercial and residential site as well as 2 commercial sites, which can be developed into 7,100 private residential homes and a gross floor area of about 861,112 sq ft of commercial space.
On the other hand, the reserve list will include a total of 24 sites, of which 14 are designated for private residential developments, 2 for white sites, 2 for commercial sites and the remaining six for hotel developments. These sites can also be developed into 7,100 private homes, 3.3 million sq ft (GFA) of commercial space and 3,700 hotel rooms.