Bukit Timah and Marina South Sites highlight Singapore’s GLS listing
Singapore’s Urban Redevelopment Authority includes a residential site in Bukit Timah on a confirmed list of six sites to be auctioned in the second half of this year as authorities prepare to replenish Singapore’s dwindling housing pipeline. the city.
The URA Government’s July-December Land Sale (GLS) program released on Tuesday includes a 4,600 square meter (49,500 square foot) residential site between Beauty World Center and Bukit Timah Plaza that could yield 160 new condo units in one of the city’s most uptown neighborhoods.
“The Bukit Timah Link site – with an acceptable development size of 160 units – is expected to generate strong interest among developers, including smaller players,” said Wong Siew Ying, Head of Research and Content at PropNex Realty. She added that “the six sites on the confirmed list are fairly well spread out, including sites in suburban areas, city outskirts and downtown, which will provide potential buyers with a variety of private housing options.” .
The list of sites for sale in the second half of 2022 prompts developers to start building 3,505 new homes in the city, 26% more than expected supply in the first six months of the year, after a rise of the average house price index. 0.4% in the first quarter compared to the previous three months.
Strong reception expected
Scheduled to launch for sale in August, the site at the junction of Bukit Timah Link and Jalan Jurong Kechil, near Beauty World MRT station, is likely to find bidders encouraged by the strong sales performance of the adjacent site The [email protected] World by BBR Holdings, which saw 96% of its units seized when it first opened nearly two years ago, Wong said.
The site on Bukit Timah Link sits directly opposite a Jalan Anak Bukit mixed-use project development being developed by Far East Organization and its Hong Kong-based sibling Sino Group – which the joint venture won in a public tender in August 2021 for S$1.03 billion ($750 million).
Another site in the GLS scheme that should catch the eye of developers, and which is likely to be the most expensive plot on the list, is a 12,300 square meter mixed-use plot of land on Marina Gardens Lane. To be launched for sale in December, the land sits next to the Gardens by the Bay tourist attraction in downtown Singapore.
The URA said the inclusion of the combined commercial and residential project would mark the first site to be made available on Marina Gardens Lane as authorities continue to accelerate development of the Marina South area with around 795 new homes and 750 square meters of fresh commercial space. to build.
“Situated next to the upcoming Marina South MRT station, the land has excellent location attributes,” said Wong Xian Yang, Head of Research for Cushman & Wakefield in Singapore. “However, the quantum of the site is significant and bids for this site are expected to exceed $1 billion. The Marina Gardens Lane site would test developers’ appetite for high-end residential homes in the CBD.
Appetite for small sites
Both plots are attractive locations for developers, but the high estimated prices on the higher-end plots “could deter potential bidders” while some smaller plots may “benefit from good demand” with their higher tickets. small, according to Ong Teck Hui, senior director of research and consulting at JLL.
For smaller sites, Ong estimated that the price of Bukit Timah land could remain below the S$200 million mark, while bids for a site on Hillview Rise in the Bukit Batok planning area, which could produce 335 new units, could average S$300 million.
The land premium for these sites will likely be only a fraction of the Marina South parcel. Ong estimates a 50,700 square meter mixed-use plot of land in Tampines on the Upper East Coast, which could deliver 1,190 new homes and 14,000 square meters of commercial space, is also likely to attract business. deals of around S$1 billion, with an analyst. noting that the scale of these projects could limit calls for tenders.
“The recent closing of the tender for residential sites at Dunman Road and Pine Grove (plot A) shows lackluster demand for large sites with high land cost. However, since the launch of the site in question is in December 2022, it remains to be seen whether sentiment and demand for large sites might improve by then,” he said.
The recent tender for the site along Dunman Road in Katong attracted just two bids, with SingHaiyi Group making the highest bid at S$1.28 billion, according to a URA announcement. last week.
A smaller site in Pine Grove, meanwhile, won five tenders, with a joint venture between UOL Group and its subsidiary Singapore Land Group becoming the top bidder after bidding S$671.5 million for the plot. .
Eight plots in reserve
While this latest GLS program includes more homes than the 2,785 units projected in the first-half program, the URA also included in its announcement eight plots of land to place on its reserve list that could provide builders with potential locations for future developments, if there is a need to further increase supply.
This includes six residential sites, a hotel site and a white site – a plot with a wider range of uses – in Woodlands Avenue 2 in northern Singapore. Together, these projects can produce 3,805 private homes, 80,000 square meters of commercial space and 530 new hotel rooms.
Cushman & Wakefield’s Wong said sales of a second plot on the Pine Grove plot and a site on Clementi Avenue 1 would likely attract the most attention after the bidding for an adjacent plot of Pine Grove last week sparked fierce bidding while development launches surrounding the Clementi site over the past three years saw strong sales with attendance rates over 88%.