Lower supply of homes from land sale sites

Lower supply of homes from land sale sites

THE latest release of land for new homes here has been scaled back again as Singapore faces a record supply of homes in the pipeline and dwindling buyer demand.

The number of homes that can be built on sites being made available to developers on the Government Land Sales programme for the second half of the year is well down from that in the first half.

The six residential and two mixed-use sites on the confirmed list will be able to accommodate up to 3,900 new private homes - down 15 per cent on the 4,600 in the first six months.

But the supply of commercial space has been bumped up, especially in growth areas outlined in the Urban Redevelopment Authority's (URA) Master Plan 2014.

For instance, a 2.31ha plum site for a 13,500 sq m mixed development in Holland Road was put on the confirmed list to kick off the redevelopment of Holland Village as an "identity node" - a place with distinctive character.

Confirmed list sites go on sale regardless of interest, while reserve list sites are triggered for a public tender if a developer makes an acceptable opening offer.

Plans to develop a decentralised regional hub in Paya Lebar were also taken a step further, with a commercial plot that could be linked to Paya Lebar MRT station and interchange.

In all, 159,000 sq m of commercial gross floor area can be expected, well up from the 5,000 sq m released in the first half of the year.

Analysts said they expected the Government to pare down home supply. Ms Chia Siew Chuin, director of research and advisory at Colliers International, said Singapore faces a stunning 83,044 new private homes slated for completion over the next four years.

URA said the new sites, and these new homes, should meet demand for private homes and commercial space in the coming years.

The number of executive condominiums - a hybrid of private and public housing - from confirmed list sites dived 30 per cent to 1,500 units from the first half, noted Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle.

The Government also put 12 residential sites up for sale on the reserve list. This could take the total number of new units to 10,200 - a five-year low since the second half of 2009 when land for some 8,655 new homes was released.

Still, choice residential sites - like a 1.06ha parcel in Lorong Puntong, a 1.11ha Tampines Road plot and a 1.85ha Jurong West Street 41 site - are set to draw interest. "These three land parcels should see considerable demand due to their good locations and a relatively low number of launches in the surrounding area," said Ms Christine Li, OrangeTee research head.

No hotel sites were released given a healthy supply of rooms.

But land for retail facilities in HDB and industrial estates, MRT stations, as well as sports and community facilities, will be released through other agencies, URA said.


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