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by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on Government Land Sales Programme for 1H 2024

Government Land Sales

Press Release

6 Dec 2023

OrangeTee's comments on Government Land Sales Programme for 1H 2024

FOR IMMEDIATE RELEASE


Singapore, 6 Dec 2023 – The government has just released the Government Land Sales Programme for H1 2024.


Overview

It is timely that the government has released more land for sale in the first half of 2024. As price is a function of demand and supply, apart from using cooling measures as a means to moderate demand, increasing housing supply may also be effective in controlling prices. As many as 5,450 units will be released over 10 plots in H1 2024, this will be the most number of units and most number of plots launched since H2 2013.  



Individual Site Analysis 


1. Holland Drive 

This is a plum site that is right beside One Holland Village and walking distance to the Holland Village MRT station. This site is also close to shopping belts along Orchard Road, amenities at Buona Vista and One North business park. Although this place may have high rental potential, investor demand may remain muted owing to the cooling measures and higher property taxes. However, local families may be drawn to the place for its proximity to some good schools like Henry Park Primary School and Nanyang Primary School, therefore there could still be healthy domestic demand for homes on this plot.  


2. River Valley Green 

This is a plum site that is right beside the shopping mall Great World City and the Great World MRT station. This site is also close to shopping belts along Orchard Road and at the fringe of downtown core. We anticipate strong buying interest for this area given its good location and convenience. Previous launches in the vicinity like CanningHill Piers, Riviere and Irwell Hill Residences drew strong buyer interest. 


3. Canberra Crescent 

This site may draw moderate interest as it is not close to an MRT station and has limited amenities. The land parcel also is an L shape which may not be easy to maximize land use. However, previous project launches like The Watergardens at Canberra and The Commodore both launched in 2021 sold well and drew healthy buyer interest.  


4. De Souza Avenue 

This site may draw moderate interest as it is not close to MRT station or key amenities. Moreover, a number of sites have already been released in the vicinity including Toh Tuck and Anak Bukit area. However, tall units may have greenery view of Bukit Batok Nature Park.  


5. Jalan Loyang Besar EC

Executive condominiums remain popular among Singaporeans for their affordability. New condos in Pasir Ris were transacted at a median price of S$1,775 psf while resales were transacted at S$1,219 psf in Jan-Nov 2023.  This site is conveniently located beside Downtown East which will be attractive to families with young children. There should be pent-up demand in the area as the last EC launch was in 2013, and the project is Sea Horizon. 


6. Margaret Drive

Private condos in Queenstown has always been well received including previous launches like Stirling Residences, Margaret Ville and Queens Peak. In 2022, more than 1,100 HDB resale flats have obtained MOP and these flats are eligible for resale. Therefore, there will be a ready pool of HDB upgraders who will be interested to upgrade to a condo in this place. Many flats have also been sold at relatively quite high prices, which means that the HDB upgraders would have the financial means to upgrade to a condo. For instance, the median resale price of new HDB resale flats of less than 10 years old in Queenstown is S$931,888  in Jan-Nov 2023, while 162 resale flats have been sold for at least a million dollars to-date. 


7. Media Circle 

A long term service apartment will be set up at Media Circle. With Singapore's plan to expand further into the healthcare, high-tech research and development hub and bio-medical arena, we foresee more people working in the one-north area. This site is also in close proximity to the one-north business precinct, NUH, NUS, and the Science Park business area. Therefore, more healthcare professionals, medical expats, visiting professors, etc may be travelling to Singapore for mid-term or short term consultations or contracts. Therefore, these service apartments could provide short to mid-term accommodation for these expats or specialists if they were to work in Singapore for one semester or a few months. 


8. Dairy Farm Walk 

This site may draw moderate interest as a number of sites have already been released close by including projects like The Botany and Dairy Farm Residences. The Dairy Farm Residences is fully sold and has just been completed. The Botany is 57.3 per cent sold or 221 units sold out of 386 units based on Developer Monthly Sales data for October 2023. 


9. Tengah Garden Avenue 

This is a relatively new site that may be close to the upcoming Hong Kah MRT station and some new amenities. The buyers could potentially be from HDB upgraders living in Jurong, Bukit Batok and Bukit Panjang. We anticipate moderate buyer and developer interest for this land parcel since it is a new area. 






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