Government continues to trim supply for private homes in Singapore
Number of units to be yield from the confirmed list is the lowest since 2009
According to the latest government land sales (GLS) programme, the total number of confirmed sites for sale has been greatly reduced for the second half of 2020.
Amid the current global COVID-19 pandemic situation, it should bring some form of relief to property developers as they continue to push out their existing inventory of unsold condo units.
Under the 2H 2020 GLS programme, a total of 3 residential sites (including one for executive condominium (EC)) have been released for sale under the confirmed list.
Whereas under the reserve list, it comprises a total of 5 residential sites (including one EC site), 3 white sites, and 1 hotel site.
The 2 private residential sites being listed (under the confirmed list) are both situated within mature housing estates.
Thus, analysts believe that these 2 sites may spur strong interest from real estate developers due to their location.
And given the right price point, both sites could present themselves as attractive options to homebuyers and investors in the future.
The first site is located along Ang Mo Kio Avenue 1.
It is situated just approximately 500 meters away from the upcoming Mayflower MRT station – which is expected to be in operation by the end of 2020.
It has the potential to yield around 370 private homes, which is relatively palatable and should appeal to property developers.
In fact, the Ang Mo Kio Avenue 1 GLS site is the latest to be offered for sale within District 20 since the site along Lorong Puntong (now known as Thomson Impressions) was award back in Oct 2014.
The site was then sold for $173.6 million (or $731 psf ppr), to property developer Nanshan Group.
Looking at the past sales result of new launch condos within District 20, analysts believe that the Ang Mo Kio Avenue 1 site could draw up to 5 bids – with a top bid coming in around $700 – $750 psf ppr.
The other site under the confirmed list of the 2H 2020 GLS programme is located along Northumberland Road.
Property consultancy firm, Colliers International considered it to be the more attractive site among the 2 sites listed for sale.
The site is located at the junction of both Gloucester Road and Race Course Road; just diagonally across the current Farrer Park MRT station.
It can potentially yield 385 private residential units and it also has a cap of 1,500 square meters GFA for retail space and a minimum of 500 square meters GFA for a childcare center.
Taking reference from the nearby new launch project, [email protected] which has sold 31 out of 116 units, the development was launched for sale back in September 2019, and units were sold at an average price of $1,872 psf to date.
Back then, the site was sold for $1,001 psf ppr to developer Low Keng Huat in January 2017.
Thus, Colliers foresee that the Northumberland Road GLS site could draw as many as 11 bids, and a top bid could come in at around $900 – $1,000 psf ppr.