The Government Land Sales (GLS) Programme for the second half of 2020 comprises three Confirmed List sites and nine Reserve List sites. These sites can yield about 6,670 private residential units, 101,500 sqm gross floor area (GFA) of commercial space and 1,070 hotel rooms.
Taking into consideration the economic contraction and uncertain business outlook caused by the Covid-19 pandemic, the supply of private residential units on the Confirmed List was reduced. There will also not be any new sites for predominantly commercial or hotel use in the GLS Programme for H2 2020. A good selection of sites with additional supply in the Reserve List is maintained for developers to initiate for development based on assessment for demand.
The Confirmed List comprises three new private residential sites [including one Executive Condominium (EC) site]. The three sites are at Northumberland Road, Ang Mo Kio Avenue 1 and Tengah Garden Walk. These three sites can yield about 1,370 private residential units (including 615 EC units) and 1,500 sqm GFA of commercial space.
Together with the H1 2020 GLS programme where the 3 confirmed sites could yield 1,775 new homes, this sums up to a total supply of 3,145 new homes in 2020, which is slightly lower than the 3,740 units supplied in 2019 and much lower than the 5,480 units in 2018.
The Reserve List comprises five private residential sites (including one EC site), three White sites and one hotel site. These sites can yield about 5,300 private residential units (including 590 EC units), 100,000 sqm GFA of commercial space and 1,070 hotel rooms.
Supply of Private Housing
With the progressive decline in the unsold inventory of private housing units over the past year, the Government has provided a moderate supply via the Confirmed List in the H2 2020 GLS Programme. Together with the supply of units already in the pipeline, this will cater to the housing needs of the population when completed in about four to five years’ time.
The two residential sites at Northumberland Road and Ang Mo Kio Avenue 1 offer developers options in mature housing estates. On the reserve list, four of the residential sites were from the H1 2020 reserve list, with the addition of a new residential site at Lentor Central with some commercial quantum.
The Confirmed List sites will be launched in the last quarter of 2020, each with a longer tender period of about six months to give developers more time to space out their development schedule and sales activities. By the time of the tender dates for these sites, developers who manage to clear a substantial portion of their inventory will be keen to bid for these sites.
The reduction in supply as well as the longer tender period points to the government’s concern for the fallout of the Covid-19 pandemic on the economy. However, should market activity picks up, developers can still apply for the release of sites on the Reserve List.
The white sites at Woodlands Avenue 2 and Kampong Bugis from the H1 2020 Reserve List as well as the two existing sites at Marina View and River Valley Road will be carried over to the H2 2020 Reserve List.