The Government has decided to moderate the total supply of private residential units for the first-half 2019 Government Land Sales (GLS) programme, citing the significant growth in pipeline supply while demand has started to moderate following the introduction of the July property cooling measures.
The Ministry of National Development (MND) said on Thursday (Dec 6) morning that the first-half 2019 GLS programme will comprise five confirmed list sites and nine reserve list sites. These sites can yield about 6,475 private residential units (including 910 executive condominium or EC units), 86,000 sq m gross floor area (GFA) of commercial space and 1,115 hotel rooms.
The private housing supply works out to be 19.5 per cent lower than the 8,040 private residential units (including 1,210 EC units) in the confirmed and reserve lists of the current second-half 2018 slate.
The commercial space supply for first-half 2019 will also be lower than the 124,200 sq m GFA of commercial space for second-half 2018. However, the hotel supply is higher than the 930 hotel rooms for the current half.
Through the first-half 2019 confirmed list, the MND will release about 2,025 private residential units (including 385 EC units) and 4,000 sq m GFA of complementary commercial space. In comparison, it is releasing land for 2,705 private homes (including 695 EC units), 42,200 sq m GFA of commercial space and 390 hotel rooms in the current second-half 2018 slate.
Confirmed list sites are launched according to schedule regardless of demand.
On the reserve list, the Government will offer land for about 4,450 private residential units (including 525 EC units), 82,000 sq m GFA of commercial space and 1,115 hotel rooms. This compares with second-half 2018 reserve-list supply of 5,335 private residential units (including 515 EC untis), 82,000 sq m GFA of commercial space and 540 hotel rooms.
Reserve-list sites are launched only upon successful application by a developer or when there is sufficient market interest in a site.
In its statement, the MND noted that the supply of private housing units in the pipeline has grown significantly and is currently at 45,000 units. This comprises around 31,000 unsold units from GLS and en-bloc sale sites with planning approval, and an additional 14,000 units from sites that are pending planning approval. In addition, there are around 28,000 existing private housing units that remain vacant.
In contrast, demand has started to moderate. Following the introduction of the property market cooling measures in July, overall transaction volumes have declined, while developers’ demand for land has also moderated.
“Given these factors, the Government has decided to moderate the total supply of private residential units for the H1 2019 GLS programme. Together with the supply in the pipeline, this will sufficiently cater to the housing needs of our population. The Government will continue to monitor the property market closely and adjust the supply from future GLS programmes, as necessary,” the MND said.
The first-half 2019 reserve list will have a white site along Woodlands Avenue 2 for a mixed-use development.
“This will help to sustain the development momentum of Woodlands Regional Centre as a major commercial node outside the city, in line with the Government’s objective of bringing job opportunities closer to homes,” the MND said. The site is imposed with a minimum office quantum of 45,000 sq m GFA and a retail cap of 33,000 sq m GFA.
A new hotel site in Sims Avenue will be added to the first-half 2019 reserve list.
“Together with the existing white site at Marina View carried over on the reserve list from the H2 2018 GLS programme, there will be ample opportunities for developers to initiate additional supply of hotel rooms over and above the current pipeline supply,” it added.
Source: The Straits Times
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