All around the ministry of national defense has been trying to scale back the Government Land Sales, which is a program designed to help private housing and commercial and hotel sites for the first few months of the year 2014. This is designed to factor in the large supply pipeline available. This was done in order to create a sort of “soft landing”.
Government to cut Land Sales
During H1 2014 the Ministry of National Defense is going to launch through the eight list sites including Boardwalk Residences that are confirmed in order to generate 4,630 private homes. The expectation is that there will be seven residential sites on the confirmed list, which is down from the ten that we currently have.
The Ministry of National Defense has noted that this confirmed list supply should be “added to the existing large pipeline supply of about 97,400 private housing units (including ECs)”.
Adequate supply of Land in the Pipeline
The reserves list including Boardwalk Residences is expected to be trimmed down 15.1 percent or down to 6,995 units. This is down from 8,195 units, which includes 533 ECs.
The Gross Floor Area for commercial space has a confirmed and reserve list supply of 193,340 which is a large drop from the current slate of 268,050 in H1 2014. This is the lowest that they’ve had since H1 2006 when it was at 125,505.
The Ministry of National Defense has stated two different reserve-list sites. One is a white site that is located in Marina View, the other is a commercial parcel located in Sims Avenue. These will “provide opportunities for the market to initiate the development of more commercial space, over and above the 1.1 million sq m GFA of office space in the pipeline, if there is demand”.
The Urban Redevelopment Authority has highlighted the fact that many developers may end up choosing to develop hotel rooms in the Marina View white site as well as Boardwalk Residences Land Sales. That is of course after they set aside the minimum quantum space that must be used for offices and other uses. Currently the plans include three hotels, all of which are currently on the reserve list. Havelock road and East Coast road have already been triggered for launch. These will also be removed from the reserve list in order to “facilitate a review of the land use intention”.
The ministry has summed up it’s strategy by stating:”Supply from the GLS Programme for Boardwalk Residences, together with the large supply from projects in the pipeline, is expected to be adequate to meet the demand for private housing and commercial space over the next few years.”
Out of all of these, a total of seven new sites have been introduced, five of them are already on the confirmed list. These are located on EC sites of Yishun St 51, these are close to the Orchid Country Club Golf Course.
Boardwalk Residences in Singapore should receive good response as the land prices are very cheap. It is located in Sengkang West Way along Fernvale Close
There are two new sites on the reserve list that are private housing sites on Margaret Drive and in Sembawang Road/Canberra Link.
The worry is that the soft-launching strategy could go badly, even though the market watchers agree with the government’s to clip land sales.