Government Land Sales Programme for 2H2023

SINGAPORE, 21 JUNE, 2023 – The Government today announced the Government Land Sales (GLS) Programme for the second half of 2023 (2H2023), which comprises eight Confirmed List sites and nine Reserve List sites.

Residential GLS sites

Ms. Chia Siew Chuin, Head of Residential Research, Research & Consultancy, Singapore

Government ramps up residential land supply to addresses market imbalance

“As anticipated, the Ministry of National Development is intensifying the allocation of land for private housing on the Confirmed List of the 2H2023 GLS programme. This is the sixth consecutive increase in the supply of residential units on the Confirmed List under its half-yearly GLS programme. This demonstrates the government's determination in addressing the existing market imbalance, where demand for private housing continues to be robust, but supply remains on the catch up to bridge the gap."

Following on the heels of the newly imposed 27 April 2023 market cooling measures, the supply of 5,160 private housing units (including executive condominiums or ECS) on the 2H2023 Confirmed List is within reasonable expectations. This is considering that unsold housing stock (including ECs) remains low, albeit the slight improvement from the low of 16,240 units in 1Q22 to 17,756 units in 1Q23.

The spread of private housing supply allocation on the 2H2023 Confirmed List across the market segments is the highest in the Outside Central Region (OCR) with 2,595 units (50.3%), followed by the Rest of Central Region (RCR) with 1,340 units (26.0%) and the Core Central Region (CCR) with 1,225 units (23.7%). This reflects a targeted approach to address the supply and demand imbalance with more certainty, as local demand for private housing in the OCR and RCR remains buoyant. The distribution on the Reserve List also focuses on the OCR with 1,795 units (52.3%). The CCR offers 1,285 units (37.5%) while the RCR will provide 350 units (10.2%). The higher supply of units in the CCR Reserve List is a provision for any potential improvements in demand for high-end homes and can be triggered for open tender.

A notable site on the 2H2023 residential Confirmed List is the 0.68-ha plot at Orchard Boulevard. With the potential to generate a medium-scale development of about 270 units, the plot located above the Orchard Boulevard MRT station on the Thomson-East Coast Line and in close proximity to the Orchard Road retail and hotel belt, is expected to generate interest from key developers with the track record for upmarket residential developments. The land price for the site is expected to be palatable, ranging from SGD 530 million to SGD 570 million or SGD 2,069 psf to SGD 2,225 psf per plot ratio (ppr). The last residential GLS site sold in the locale was the 5.7-ha plot that was awarded to SC Global Developments, FEC Properties and New World Development at a record price of SGD 410 million or SGD 2,377 psf ppr in May 2018.

Located right at the doorstep of the Springleaf MRT on the Thomson-East Coast Line, parcels A and B on Upper Thomson Road are expected to be closely evaluated by developers. New developments on the sites will boast unique locational attributes as they are near to the Central Catchment Reserve. Parcel A could fetch a land price of around SGD 595 million or SGD 1,030 psf ppr to SGD 656 million or SGD1,135 psf ppr. The land price for Parcel B is estimated to hover around SGD 740 million (SGD 859 psf ppr) to SGD 858 million or SGD 996 psf ppr.

Parcel A on Zion Road can potentially yield a sizeable development of 955 units in the RCR. It is easily accessible to the Havelock MRT station on the Thomson-East Coast Line and is within close proximity to food and beverage amenities in the Singapore River district and the Central Business District. The capital outlay for the site is expected to be substantial and the land cost is estimated be around SGD1.52 billion or SGD 1,670 psf ppr. The site is likely to encourage joint ventures (JVs) between two to three developers and a handful of JVs are anticipated for the site.

The site at Lorong 1 Toa Payoh, which can yield 775 units, has been transferred from the Reserve List in 1H2023 to the Confirmed List in 2H 2023. It is likely to satisfy pent-up demand built up in the mature Toa Payoh estate, given the long time gap since new residential units had been made available. Nestled among conveniences, it is expected to be well-received by developers.