Cautious Stance in ramped up land supply for H2 2021
The Ministry of National Development (MND) announced on 10 June 2021 that under its H2 2021 Government land Sales (GLS) Programme, it will offer land that can potentially yield about 2,000 private homes (including executive condominium or EC units) on the Confirmed List. This is an increase of almost 25% per cent from 1,605 units for the H1 2021 GLS Programme.
MND said it decided to increase the supply moderately because even though the unsold inventory of private housing units has declined amidst strong demand, the economy is still recovering from the recession in 2020. There are continued uncertainties in the economic and labour market conditions due to the ongoing Covid-19 situation globally and locally.
The four sites on the Confirmed List are well spread across the island. The Jalan Tembusu site is in the east, Lentor Hills Road (Parcel A) is in the north-east, while the site at Dairy Farm Walk and the executive condominium site at Bukit Batok West Avenue 8 are in the west. Given the respective strong attributes of the four residential sites and the developers’ hunger for sites, they should see keen bidding when released for sale.
Separately, on the Reserve List are six residential sites, two white sites, as well as a hotel site at River Valley Road. These sites could yield another 4,860 private residential units (including EC units), 90,000 square metres (sq m) gross floor area (GFA) of commercial space and 530 hotel rooms. Of the six residential sites, three are newly introduced, namely two parcels at Pine Grove and one at Lentor Hills Road.
Taken together, the Confirmed and Reserve Lists can yield a total of 6,860 units, some 2.6% lower than the 7,045 units under the H1 2021 GLS Programme. Sites on the Reserve List are launched only upon successful application by a developer or when there is adequate market interest in a site.