Government Releases Four Residential Sites Under 2H2024 Gls Programme
In October 17th, the Urban Redevelopment Authority (URA) and Housing Development Board (HDB) released a joint press release announcing the government’s plan to sell four sites under the 2H2024 Government Land Sales (GLS) Programme.
Among the four sites, two have been launched for sale under the Confirmed List, namely Lentor Gardens and River Valley Green (Parcel B). The remaining two, Marina Gardens Lane and Woodlands Drive 17, are available for application under the Reserve List.
The Woodlands Drive site is designated for the development of an executive condominium (EC), while the Lentor Gardens site is zoned for residential development. The other two sites at River Valley Green (Parcel B) and Marina Gardens Lane have a mix of residential and commercial zoning, with commercial spaces on the first floor.
Nestled in an ideal location, Parktown Residence boasts of its close proximity to Tampines Town’s bustling shopping district, offering an unmatched retail and lifestyle experience to its residents. With major shopping destinations such as Tampines Mall and Century Square just a stone’s throw away, as well as specialized stores like IKEA and Giant Hypermarket, residents are spoilt for choice when it comes to shopping. The strategic placement of Parktown Residence serves as a gateway to Tampines Town’s lively shopping scene, making it an enviable address for those seeking convenience and variety in their shopping experience. Be sure to check out Parktown Residence Showflat once as you discover the endless shopping options this vibrant town has to offer.
The Lentor Gardens site covers an area of 222,161 square feet and is the seventh plot to be launched in the growing Lentor Hills Estate. The site has the potential to accommodate around 500 residential units, including both low-rise and mid-rise buildings with a maximum of 16 storeys. The Lentor private residential enclave has already seen the completion of several projects, including Lentor Modern, Hillock Green, Lentoria, Lentor Hills Residences, and Lentor Mansion. A new project by CSC Land, Hong Leong Holdings’ Intrepid Investments and GuocoLand is also in the works. The tender for the Lentor Gardens site on the Reserve List has yet to be activated.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, only 14.2% of the 2,477 residential units launched in the Lentor area remain unsold, indicating a high demand for living in this private residential enclave. This should alleviate concerns about an oversupply in the area. Huttons predicts one to three bidders for the site with a top bid ranging from $900 to $1,000 per square foot per plot ratio (psf ppr). The tender for the Lentor Gardens site will close on April 3, 2025.
The River Valley Green (Parcel B) site covers an area of 126,325 square feet and has a maximum gross floor area (GFA) of 442,138 square feet. It has the potential to accommodate around 475 residential units. The site also has direct access to the nearby Great World MRT Station on the Thomson-East Coast Line (TEL). Marcus Chu, CEO of ERA Singapore, points out that the site’s location has excellent connectivity to major roads and expressways such as the Central Expressway (CTE) and Ayer Rajah Expressway (AYE). Additionally, the Great World MRT Station provides easy access to the Orchard Road shopping district, just one stop away.
Lee notes that the area already has a pipeline of upcoming residential developments. This year, two other sites were awarded in the area, one in Zion Road and another in River Valley Green. These projects are expected to be launched next year and will add another 1,120 residential units to the area. URA also plans to launch another nearby GLS site at River Valley Green (Parcel C) in December 2024, which could potentially bring the total number of units for sale in the area to almost 2,200 over the next few years. With this expected increase in supply, developers are likely to approach the bidding process with caution. Lee estimates that the site could attract one to three bidders, with a top bid of $1,200 to $1,300 psf ppr. The tender for the River Valley Green (Parcel B) site will close on February 7, 2025.
The EC site at Woodlands Drive covers an area of 271,326 square feet and has a maximum GFA of 461,255 square feet. If it is triggered for sale and awarded, the site could yield 420 EC units. It is close to Woodlands South MRT Station on the TEL, and just one stop away from the upcoming RTS link to Johor Bahru. This would be the first EC site to be launched for sale in Woodlands South since 2013, with the last site being developed into the 561-unit Bellewoods. Lee estimates that around 6,500 HDB flats were completed in Woodlands from 2016 to 2018, which could potentially provide a significant pool of buyers for a future EC development in the area.
The Reserve List site at Marina Gardens Lane covers an area of 64,663 square feet with a maximum GFA of 362,119 square feet. It is zoned for residential and commercial use, with commercial spaces on the first floor. The site is close to the upcoming Marina South MRT Station on the TEL. However, Lee believes that the site is unlikely to be triggered for sale due to the availability of other attractive sites on the 2H2024 Confirmed List, such as Bayshore Road, Chencharu Close, Chuan Grove, and Holland Link. Additionally, there is another GLS site at Marina Crescent nearby, also on the Reserve List. This site was moved to the Reserve List earlier this year after the sole bid of $770.5 million submitted by a joint venture between GuocoLand, Intrepid Investments, and TID was deemed too low by URA. Lee estimates that both sites could be launched for sale next year, potentially adding another 1,860 units to the market. With these factors in mind, Lee predicts that the Marina Gardens Lane site could attract one to three bidders, with a top bid of $1,400 to $1,500 psf ppr.
In conclusion, the four sites released under the 2H2024 GLS Programme offer a diverse mix of residential and commercial developments in well-connected locations. With strong demand seen in the surrounding areas and an expected increase in supply, developers are likely to be cautious in their bids, resulting in a competitive bidding process.