The government will be releasing new land sites having the potential to yield up to 11,600 residential units, which includes 193,000 square meters of GFA or gross floor area of commercial space, in addition to around 2,800 Executive Condominium or EC units. The units will be part of the sites in the confirmed and reserved lists with eight and fifteen being the number of sites released respectively.
Government to release sites yielding 11,600 homes
These new land sites come under the Government Land Sales or GLS Programme, which the Urban Redevelopment Authority believes, is going to be enough to meet the total demand of private housing units in the first quarter of 2014. The number of sanctioned for 1H2014 is going to be lower than the number of units sanctioned in the first and second half of this year which stands at 14,000 and 14,200 units respectively. In fact, the number is the lowest since the first quarter of 2010 when the total supply of units was 10,550 according to the Urban Redevelopment Authority.
According to estimates, the newly sanctioned units will add to the ones already in the existing pipeline supply whose number stands at about 97,400. The sanctioned sites will have the potential to yield about 4,600 private homes, which includes 2,200 EC units, and 5000 square meter of commercial GFA space. In fact, the total number of sites for private residential sites stands at three, while those for EC, commercial and residential sites are four, one, and one respectively, in the confirmed list. Government believes that the current batch of sites, along with those sites already in the pipeline are going to prove enough to meet the housing demands of the market.
New Land Sites will meet housing needs
The policy to taper down the supply of sites for new development will help assuage the fears of developers who are yet to start their project regarding the feasibility of their investments. Moreover, mixed development sites such as the ones like the housing projects at Potong Pasir will offer quality competition in the market and around 685 residential units and commercial space of about 5.000 square meters. Moreover, these moves will help keep the property prices in check with most of the sites sanctioned being suburban sites. Thus, the property price that has hit a peak will witness some self-correction because of prudent bidding by the developers.
Riverbank Condo will see demand
Some of the measures that the authorities have announced recently such as the resale levy for those upgrading their HDB apartments, and mortgage-servicing ration of 30 percent may see the land price of EC sites go down by as much as 5 percent. Government will also accept a bid if it believes the minimum bid price is acceptable. Moreover, it has decided to remove the prime hotel site at Race Course Road in order to balance the healthy growth in hotel rooms available. All of these measures will expectedly help in making the property prices more practical. Riverbank Condo in Sengkang will also see great demand given the location and price of the property