Singapore’s Ministry of National Development announced the Land Sales Programme for the first half of 2019 on 6 December 2018. There will be five sites on the Confirmed List and nine on the Reserve List, yielding a total of 6,475 private residential units (including 910 executive condominium or EC units), 86,000 square metres gross floor area (GFA) of commercial space and 1,115 hotel rooms. Compared to the 8,040 housing units in the H2 2018 GLS Programme, there is an apparent 20% reduction based on the 6,475 units in the H1 2019 GLS supply. Similarly, there is also a cut back of nearly 30% in the supply of office space from 124,200 square metres previously to 86,000 square metres. The exception is in the supply of hotel rooms which saw an increase of 20% to 1,115 rooms in the coming supply.
According to the Government, there are currently 45,000 units in the pipeline which comprises 31,000 unsold units from projects with planning approvals and 14,000 units from sites that are pending approval. In addition, there are 28,000 existing homes that lie vacant. Taking into consideration the moderating housing demand as a result of the cooling measures introduced in July 2018, the government has decided to scale back the residential supply for 2019.
Three of the residential sites on the Confirm List that have more potential to attract developers’ interest are Clementi Avenue 1 (640 units), Tan Quee Lan Street (580 units) and one-north Gateway (170 units). On the Reserve List, the residential site at Dunman Road (1,070 units) and the white site at Marina View (905 units) may also interest developers to apply for their release for sale. Bearing in mind the current cautious sentiment, developers are likely to be more measured in their bids compared to those seen in H1 2018.
Photo credit: The Straits Times