Lower supply of new homes for second half of Govt land sales programme

Cutback comes amid record supply in the pipeline and falling demand
By Cheryl Ong, The Straits Times, 11 Jun 2014

THE latest release of land for new homes here has been scaled back again as Singapore faces a record supply of homes in the pipeline and dwindling buyer demand.

The number of homes that can be built on sites being made available to developers on the Government Land Sales programme for the second half of the year is well down from that in the first half.

The six residential and two mixed-use sites on the confirmed list will be able to accommodate up to 3,900 new private homes - down 15 per cent on the 4,600 in the first six months.

But the supply of commercial space has been bumped up, especially in growth areas outlined in the Urban Redevelopment Authority's (URA) Master Plan 2014.

For instance, a 2.31ha plum site for a 13,500 sq m mixed development in Holland Road was put on the confirmed list to kick off the redevelopment of Holland Village as an "identity node" - a place with distinctive character.

Confirmed list sites go on sale regardless of interest, while reserve list sites are triggered for a public tender if a developer makes an acceptable opening offer.

Plans to develop a decentralised regional hub in Paya Lebar were also taken a step further, with a commercial plot that could be linked to Paya Lebar MRT station and interchange.

In all, 159,000 sq m of commercial gross floor area can be expected, well up from the 5,000 sq m released in the first half of the year.

Analysts said they expected the Government to pare down home supply. Ms Chia Siew Chuin, director of research and advisory at Colliers International, said Singapore faces a stunning 83,044 new private homes slated for completion over the next four years.

URA said the new sites, and these new homes, should meet demand for private homes and commercial space in the coming years.

The number of executive condominiums - a hybrid of private and public housing - from confirmed list sites dived 30 per cent to 1,500 units from the first half, noted Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle.

The Government also put 12 residential sites up for sale on the reserve list. This could take the total number of new units to 10,200 - a five-year low since the second half of 2009 when land for some 8,655 new homes was released.

Still, choice residential sites - like a 1.06ha parcel in Lorong Puntong, a 1.11ha Tampines Road plot and a 1.85ha Jurong West Street 41 site - are set to draw interest. "These three land parcels should see considerable demand due to their good locations and a relatively low number of launches in the surrounding area," said Ms Christine Li, OrangeTee research head.

No hotel sites were released given a healthy supply of rooms. But land for retail facilities in HDB and industrial estates, MRT stations, as well as sports and community facilities, will be released through other agencies, URA said.

More commercial land up for sale
It is a sign of govt plans to decentralise business hubs
By Cheryl Ong, The Straits Times, 11 Jun 2014

A SHARP spike in commercial land was a striking feature of the Government's land sales programme released yesterday.

The Ministry of National Development said it will release land that could supply up to 159,000 sq m of commercial gross floor area (GFA) in the next half of the year - a huge hike over the 5,000 sq m from land on the confirmed list in the first half of the year.

The move was a sign that the Government was stepping up its plans to decentralise commercial hubs, analysts said.

Some mixed-use sites are likely to draw strong interest from developers, since the residential market has become challenging, said Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle.

The bulk of new commercial space will come from a 3.98ha site in Paya Lebar Road, which can yield up to 132,000 sq m of GFA.

This site comprises a 2.07ha plot in Sims Avenue and another plot across the road. Both plots will be connected underground, and will give developers more flexibility for the new building's design, said the Urban Redevelopment Authority.

With its direct links to transport nodes at the Paya Lebar interchange and MRT station - where the East-West and Circle lines meet - the site is likely to gather keen interest from developers, said Ms Chia Siew Chuin, director of research and advisory at Colliers International.

But its location above a canal and sheer size would add complexity to construction and costs, so the site is likely to have bigger players throwing their hats in the ring, said Mr Nicholas Mak, research head at SLP International.

Developers are also expected to favour a prime 2.31ha site in Holland Road - in the heart of Holland Village and prime District 10. This will be the first site released by the Government in Holland Village since it announced plans to develop the bustling haunt into an identity node - a widely loved locality with distinctive character.

The site has been carved from a site of former Housing Board flats and a car park, and is slated for a mixed development as part of the Holland Village Extension Plan. It can yield 580 homes and a mid-sized mall with 13,500 sq m of GFA.

Plans to have the mixed-use project's developer build a basement car park were announced by the URA last year.

Other commercial sites in the city took the back seat on the reserve list. A 2.14ha site in Beach Road that can yield 89,880 sq m of GFA will offer an alternative office space on the outskirts of the Central Business District if triggered for sale - together with iconic developments like Duo and South Beach, said Mr Desmond Sim, research head at CBRE.

Holland V market car park to close
By Cheryl Ong, The Straits Times, 11 Jun 2014

THE car park behind Holland Village Market and Food Centre - an open-air and deck parking area - will be closed by the first half of next year, said the Urban Redevelopment Authority yesterday.

This will make way for the construction of the mixed development on the Holland Road site released on the confirmed list yesterday.

The upcoming project will include parking spaces to meet demand from visitors and residents.

But before its completion, an interim car park will be built to replace the public lots affected.

A multi-storey car park at Block 10A Holland Drive is also being expanded to replace season parking spaces. These will be ready before the existing car park closes, and will make up for the number of parking spaces that will be removed.