In first half of 2024, land price for private home will rise

The Bayshore Road development site will attract developer interest due to the Long Island reclamation project and development along Singapore’s eastern coastline.

In order to reduce the developers’ risk, a portion the GFA of the River Valley Green site is reserved for long-stay serviced apartment.

Given the location of the Bayshore Precinct and its proximity to the Bayshore MRT station, it is likely that developers will attempt to take advantage of the first-movers’ advantage.

There will be fierce competition for the next few years with the construction of 3,000 private houses in this area.

Land supply has been increased for private homes in the first six months of 2024. These include a long-stay apartment pilot in one-north, as well the Bayshore precinct’s first private home site.

The Government Land Sales (GLS), programme announced on Dec 6, includes 10 sites that are confirmed, nine sites which are on reserve, 8 910 private residential units and 107,750 sqm GFA of commercial area, as well as 530 hotels rooms.

In the first half, 2022, the average number of bids received per residential site was 5.2. By the second, 2023, this figure has dwindled to 3.7.

Increased interest rates, market uncertainty and an increased land supply will all help to restrain bids and developers’ appetite for GLS site.

Several sites of prime quality are on offer, which could be attractive to developers who would otherwise need to look at the market for collective sales to find prime plots.

Analysts have noted that Media Circle, located in One-North and containing 515 serviced residences, is on the list as the first confirmed long-term serviced accommodation site.

On December 4, the GLS Programme for the second half of 2023 launched two new sites in Upper Thomson Road (Zion Road) and Upper Thomson Road. Both consisted of a mix residential and extended-stay units.

Media Circle only allows long-term serviced apartments. Developers are not required to sell their project within the first five years in order to qualify for a waiver of Additional Buyer Stamp Duty.

Find out more: Newport Residences Showflat Address

The analysts believe that the Jalan Lorang Besar site in Pasir Ris will be the most popular of the list sites. Such hybrid private houses are affordable and appeal to first-time and upgrader buyers.

Sea Horizon was the last EC launched in Pasir Ris in 2013.

Developers may also choose to build on nine additional sites from the list of reserves, if there’s a high demand.

List of six private residential properties includes two EC sites that have 855 units each, and a River Valley Green site which has 220 apartments for long-term service. It also includes a hotel with 530 rooms, 550 hotel rooms, a mixed-use site and 520 commercial sites.

MND has stated that releasing the first private home sale site at Bayshore Road to the reserve list is the catalyst for the development and growth of Bayshore estate.

This new 60ha development will include 10,000 homes — around 3,000 HDB and 7,000 HDB homes — on reclaimed lands between Upper East Coast Road, East Coast Parkway and the South.

The Bayshore Road and River Valley Green Parcel B Sites are “most interesting” on the list and have the greatest chance to be triggered.

The sites at Holland Drive Avenue and De Souza Avenue in the city of De Souza, which have also been added to the first half 2024 confirmed list after being moved from the second half 2023 reserve list should also be receiving a great deal of interest.

Holland Drive, based on the size of the land and the plot ratio, is expected to reach a land value exceeding $1 billion, which could encourage consortiums and joint bids.

Experts anticipate that the Margaret Drive and Tampines Street 94% plots will also be in high demand, since they are located within popular residential precincts Queenstown or Tampines.

The Margaret Drive Site (Margaret Ville), that was sold back in 2016, was highly contested, and attracted 14 offers. The Tampines Site will be developed into a future mixed-use complex next to Tampines West MRT. It is expected that the future mall would be well supported due to a growing resident population.

The 10 confirmed sites – including an executive condominium, a long-stay serviced apartment, and a commercial and residential property – could yield 5,450 private residences. This includes 710 ECs units and 515 apartments for long-term service.

The second half of 2023 will see a growth of 5,6 per cent.

According to the Ministry of National Development’s (MND), the pipeline supply of private homes including ECs will reach 59.100 housing units.

The 41,900 units approved by the planning authority and the 17,200 units awarded to GLS sites or collective sales sites without planning approval make up this total.

The market is expecting further bid dilution from developers as 10 list sites are confirmed to be released in the first six months of 2024.

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