In 2020, the authorities will be releasing 3 confirmed sites and 8 more on the reserve list within the first half of the year.
3 confirmed sites will maintain a balance of housing supply in the market
The number of confirmed sites under the Government Land Sales Programme (GLS) to be released in H2 of 2020 is the lowest in the past 5 years.
The 3 confirmed sites can yield only a total of 1,775 units, though this is still more than the 1,715 units from the 5 sites released in the first half of this year.
Majority of or 4,715 potential residential units are spread out over the 8 sites on the reserve list, which will only be triggered for sale when the bid amount is reached.
Analysts say that this restrained release may help stabilise the property market as a housing supply glut looms and economic growth slows. It will also help moderate bids by developers.
According to the Ministry of National Development (MND), the overall transaction volume for private housing units has remained modest even though demand has increased. There are however about 39,000 units in the existing supply pipeline; 34,000 of which are unsold units and 5,000 are from sites pending planning approval.
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Mixed-use sites will remain a feature of future urban planning
View from a unit in 8 St Thomas condo. Picture: iProperty
The 3 sites which will be released mostly in the second quarter are located at:
- Yishun Avenue 9 – This 2.15-hectare site will be for executive condominiums (EC). As the area has not seen the release of any EC site since 2014, pent-up demand may drive up bids.
- Tanah Merah Kechil Link – This 1.01-hectare mixed-use site can yield 310 residential units and has 2,000 sq m for commercial space. This may be the most popular of the 3 sites considering its proximity to the Tanah Merah MRT station and the palatability of its size.
- Jalan Anak Bukit – This 3.29-hectare site is also zoned for mixed-use purposes, yielding 865 potential homes and 20,000 sqm of commercial space. This is the largest of the 3 sites and while mixed-use sites may pique developers’ interest, analysts think developers the mere size of it will lend it some uncertainty. Developers with deeper pockets may however still consider this site as it is located near the Beauty World MRT station.
See more: 3 white sites on URA’s reserve list may attract developers
