Government Land Sales Programme for 2H2024

SINGAPORE, June 25, 2024 – The Government today announced the Government Land Sales (GLS) Programme for the second half of 2024 (2H2024), which comprises ten Confirmed List sites and nine Reserve List sites. 

Dr Chua Yang Liang (菜炎亮博士), Head of Research and Consultancy, South East Asia at JLL commented:

SG government maintains residential land supply while building up the critical mass at Marina South

Keeping pace with anticipated market demand, MND has released another 5,050 private residential units (RU) for bidding in 2H2024, bringing the full-year total to some 11,110 RU, with a 27% buffer when the potential housing units in the Reserve List sites are included.

In any event, the focus of the government land sales in 2H2024 remains consistent with that in 1H2024. In terms of private housing units (in the confirmed list), over 67% of the total housing units are in the OCR, with the remaining 34% divided between CCR and RCR. 

Despite the softer bidding interest since the beginning of the year, the government is committed to maintaining a stable property market. The annual demand for private residential units in Singapore hovers around 9-10,000 RU. To meet this demand, the government is strategically maintaining an annual supply of over 11,000 RU, a calculated move to ensure market stability.

The inclusion of a White site at Marina Gardens Crescent and a Residential (non-landed) site at Marina Gardens Lane into the Reserve List reflects the government’s continual effort to steer development and build up critical mass toward this southeastern tip of Gardens by the Bay. The Marina Gardens Crescent site was previously rejected by URA due to an underwhelming response by a single bidder at SGD 984 psf ppr, which was considered too low. We reckon market interest for this site would likely remain soft given the weaker global economic conditions and with US rates remaining persistently elevated.

Equally, we noticed several other residential sites situated in established or mature housing areas, which can inject new populations and serve the upgraders’ needs.

Two sites that caught our attention were Lentor Gardens and River Valley Green.

Lentor Gardens area has recently seen softer bids. Lentor Gardens closed with a single bidder in April 2023 at SGD 985 psf ppr, while another site Lentor Central had two bidders, closed at a price of SGD 982 psf ppr in Sep 2023. We reckon given the large supply coming onstream, coupled with over 1,000 units unsold inventory in the vicinity, bidders are likely to price these factors with an expected bid price of some SGD 1,000-1,050 psf ppr. The selling prices of these units should be about SGD 2,200 psf.

The vicinity of the River Valley Green site has also recorded a flurry of activity recently, although bidding lethargy may be setting in. Zion Road (Parcel A) received one offer in Jan 2024 at SGD 1,202 psf ppr (with a mandatory SA2 component), and RV Green (Parcel A) had two bidders in Jun 2024 at SGD 1,325 psf ppr (no SA2 component).

Bidders are likely to factor in the mandatory SA2 requirement for this site and factoring the bid price differential between Zion Road (Parcel A) and River Valley Green (Parcel A), we reckon the site could receive up to 2 bidders at some SGD 1,200-1,250 psf ppr, with an expected sale price of some SGD 2,800 psf.