URA releases 3 sites for sale under GLS programme
These 99-year leasehold sites can yield around 1,545 private homes in total.
The Urban Redevelopment Authority (URA) of Singapore has released a total of 3 sites for sale under the 1H 2019 Government Land Sales (GLS) programme. The announcement was made yesterday on 27 June 2019.
These 3 sites, one released under the confirmed list while the other 2 under the reserve list, can yield an estimated total of 1,545 private residential units.
The site that is launched under the confirmed list is the one at one-north Gateway. It’s being released for sale under the GLS programme’s confirmed list and it is part of JTC‘s efforts to develop more residential homes within the one-north precinct. It will help to meet the housing needs in the area and enhance it with a good mixture of residential, commercial and industrial components.
Under the URA zoning, the one-north Gateway GLS site is planned for a mixed-use residential development with commercial spaces on the ground floor.
The site covers a land area of approximately 62,201 square feet (sq ft) and a maximum GFA of 155,507 sq ft. A total of 165 residential units are expected to be yielded from this site at one-north Gateway.
Analysts are having high hopes for this site at one-north Gateway and are expecting around 6 to 10 bids to come in – given the rarity, convenience, and lucrative rental yield appreciated by both homeowners and the tenants.
They have added that private residential units in the one-north precinct have great investment potential as the area has all along been very well-received by tenants and has enjoyed a healthy capital gain over the last few years.
It was also noted the last land parcel to be launched for sale in the one-north district was back in 2005. Thus, the upcoming one-north Gateway GLS site is expected to receive strong bids from property developers who are looking to replenish their depleting land banks.
Another 2 residential sites released for sale, under the reserve list, are each located at Dunman Road and Hillview Rise – which are within close proximity to Dakota and Hillview MRT stations respectively.
A site placed under the reserve list is being triggered for sale upon a bid received from a property developer. The bid has to be of a minimum amount which is deemed acceptable by the government. In contrast, sites on confirmed lists are launched for sale according to the government’s planned schedule, regardless of interest or demand.
The Hillview Rise GLS site has a total land area of approximately 118,893.9 sq ft and a maximum GFA of 313,307.7 sq ft. It has the potential to yield around 340 private homes.
It was noted that an adjacent site at Hillview Rise was acquired by Hong Leong Holdings back in July 2018, for $460 million ($1,067 psf ppr) and property developers are interested in this subject neighboring site will likely use that as a benchmark for their bids.
Meanwhile, another GLS site at Dunman Road has a total land size of 271,626.3 sqft and a maximum GFA of 950,698 sq ft. The future new launch condo at Dunman Road can possibly yield an estimated number of 1,040 private homes.
Market watchers mentioned that it is unlikely that these 2 sites under the reserve list will be triggered for sale, given that the impending supply of private homes in the market right now and property developers may take a step back on acquiring more land while trying to clear their existing stock on hand.