SINGAPORE – The ramp-up in private residential land supply was paused for the second half of 2024 amid a slowing market, but analysts noted that a number of plum plots were released, including two of the first private housing sites in Bayshore and the Chencharu estate in Yishun.
In all, the 10 sites on the confirmed list and nine sites on the reserve list of the Government Land Sales (GLS) programme announced on June 25 will yield 8,140 private residential units, 113,650 sq m gross floor area (GFA) of commercial space and 530 hotel rooms.
The confirmed list sites, which include one executive condominium (EC) site and one commercial and residential site, can collectively yield about 5,050 private residential units including 560 EC units and 14,300 sq m GFA of commercial space.
The confirmed list supply dipped 7.3 per cent or 400 units from 5,450 private residential units in the first half of 2024 – the first drop following seven consecutive increases.
“We believe the pause in ramping up supply is wise, considering the lacklustre response in the recent land tenders and decade-low developer sales,” Ms Tricia Song, CBRE’s head of research for Singapore and South-east Asia, said.
Nonetheless, a total supply of 11,110 private homes, including 610 units from the triggered reserve list site at Zion Road (parcel B) for 2024, will be the highest supply introduced in a single year since 2013.
Mr Lee Sze Teck, senior director of data analytics at Huttons Asia, noted that there are no new sites with long-stay serviced apartments added for the second half 2024 GLS, after a pilot site for 100 long-stay serviced apartments and 540 private home in Upper Thomson Road closed on June 19 with no bids.
Interestingly, a River Valley Green (parcel B) site, which had a long-stay serviced apartment component, was moved to the confirmed list for the second half 2024 from the first half 2024 reserve list, with “less stringent requirements”, Ms Song noted.
A portion of the GFA for this site will now be allowed for 220 serviced apartments, which have a seven-day minimum stay, out of a total of 580 units, she pointed out.
Previously, under the first half 2024 reserve list, it was stipulated that the site will have 360 conventional housing units and 200-220 long-stay serviced apartments, which have a three-month minimum stay period.
Ms Song added that in view of poor participation in large sites with over 600 units, “the sites offered in this round have a more palatable quantum, which should mitigate developers’ risks of not being able to sell out within five years and incurring hefty additional buyer’s stamp duty of 35 per cent”.
A number of new sites in the second half 2024 GLS slate – many comprising between 300 units and less than 600 private homes each – are being released in the suburbs, a relatively more affordable area for upgraders, Ms Christine Sun, chief researcher and strategist at OrangeTee Group, noted.
Mr Wong Xian Yang, Cushman & Wakefield’s head of research for Singapore and South-east Asia, said that “given the drop in land prices, developers with strong financial firepower and are able to navigate the higher interest rate environment are in a good position to pick up plum sites at attractive prices”.
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