2H 2024 GLS: Bumper Crop of Sites to Boost Singapore’s Land Supply

URA dropped ten sites on the Confirmed List. Could this lead to a potential housing glut? 

On the 25^th June 2024, the Urban Redevelopment Authority (URA) announced a list of ten sites on the Confirmed List for their Government Land Sales (GLS) program. These will comprise nine residential sites, inclusive of an executive condominium (EC) plot, and a residential and commercial plot.

This is part of an active effort by the government to stabilise property prices and manage long-term housing demand. We are positive that this will give homebuyers more choices in the future, especially with sites in sought-after locations like Bayshore Road and Chuan Grove.

Overall, these ten sites could yield an estimated 5,050 residential units – a similar figure to the 5,450 units offered in 1H 2024’s Confirmed List of GLS sites.

A total supply of 11,110 private residential units in 2024 (including 610 units from the activated Reserve List site tendered out in May 2024) will be the highest supply introduced in a single year since 2013.

The sites available under the Confirmed List are as follows.

Table 1: Confirmed List 2H 2024

Source: URA, ERA Research and Market Intelligence

Among the sites, the Tampines Street 95 EC site and Chuan Grove are located within established residential enclaves that have previously seen resilient housing demand. This could draw higher interest from developers.

In addition to this, the URA has also placed an additional nine sites on their Reserve List as part of the 2H 2024 GLS program, should developers feel the need to bid for extra sites based on market demand. The Reserve List comprise five residential sites, one commercial site, two white sites, and a hotel site.

In total, they offer a potential 3,090 residential units, as well as 99,350 sqm gross floor area of commercial space, and 530 hotel rooms.

Table 2: Reserve List 2H 2024

Source: URA, ERA Research and Market Intelligence

A total of 17 new projects are set to launch in 2H 2024, tallying to an estimated 8,300 new homes.

There are eight more sites currently open for tender, and another one set to launch this month. This bumper crop of GLS sites in 2H 2024 will further bolster the existing ample land supply.

However, prevailing factors like the high-interest rate environment, economic uncertainty, and slower new home sales amidst tighter homebuyer affordability may encourage developers to bid prudently.

Let’s go over the location analysis for the ten GLS sites on the confirmed list.

Tampines Street 95 (EC) – 560 units

Source: URA

In contrast to the plot at Tampines Street 94 (previously launched in 1H 2024), the newly released site at Tampines Street 95 is earmarked for development as an EC project.

Being near its sister plot, this puts the site at Tampines Street 95 within range of Tampines West MRT station, Bedok Reservoir Park, as well as future retail options at Tampines Street 94. This confluence of amenities, coupled with its designation as an EC site, will likely make Tampines Street 95 an attractive proposition for developers and future buyers alike.

Faber Walk – 400 units

Source: URA

This site is between AYE, Pandan River and the Faber Walk landed enclave. It will be a low-rise development of up to five storeys, comprising of 400 units. While there are no MRT stations in the vicinity, is it only a 5-minute drive to Clementi MRT Station. Despite being next to AYE, residents will enjoy privacy in this tranquil living environment along Pandan River. The adjacent site (now Waterfront@Faber) was previously awarded for $687 psf ppr in June 2013. We may see muted response due to the location of the site.

Lentor Gardens – 500 units

Source: URA

Even though the Lentor Gardens GLS site is the last site available in the Lentor Hills estate, much of the area’s housing demand has been absorbed by earlier launches. Furthermore, it is the furthest site from Lentor MRT station making it less advantageous compared to neighbouring plots. Thirdly, the upcoming Upper Thomson site awarded to GuocoLand and Hong Leong will also provide prospective homebuyers with more options.

River Valley Green (Parcel B) – 580 units

Source: URA

The launch of the River Valley Green (Parcel B) site comes hot off the heels of the closure of Parcel A’s tender last week. The site, which is an estimated yield of 580 units, borders Great World MRT and is also near Great World City and River Valley Primary School. However, despite its remarkable locational attributes, it remains to be seen whether developers will exhibit interest for Parcel B, given the saturation of new launches in the area for the next two years.

Bayshore Road – 515 units

Source: URA

The Bayshore Road site is the first to be launched in the area since 1997. With a potential yield of 580 residential units, it will join upcoming HDB projects in shoring up Bayshore’s nascent future as a new waterfront neighbourhood. The site’s proximity to the newly operational Bayshore MRT station and the expansive views of East Coast Park from future high-rise units are also compelling selling points. We expect to developers to put in competitive bids for the site, especially with Bayshore’s promising future and the scarcity of newer private residential developments in the area.

Media Circle (Parcel A) and (Parcel B) – 345 and 485 units

Source: URA

Source: URA

Straddling each side of Portsdown Road, both the Media Circle (Parcel A) and Media Circle (Parcel B) sites are poised to bolster the future housing supply in one-north with a total of 830 estimated residential units; this is in line with URA’s plans to enhance the area as a vibrant mixed-use district. This could also make shorter office-to-home commutes a reality for residents working in the vicinity.

Additionally, unlike the Media Circle plot launched in 1H 2024, both new sites are not required to include a Serviced Apartments II (SA2) component. Without the mandatory requirement to include long-stay serviced apartments, developers will likely be more motivated to bid for these parcels in the face of diminished risk.

Chuan Grove – 550 units

Source: URA

This site can potentially yield 550 homes in high-rise tower blocks. It will likely draw competitive bids being on the edge of the city fringe with amenities and schools while being a 3-minute walk to Lorong Chuan MRT Station. The existing Chuan Park site that was sold enbloc is scheduled to launch in 2H 2024.

Holland Link – 240 units

Source: URA

The GLS site at Holland Plain consists of an estimated 240 units and is located amidst a predominantly landed housing enclave. Considering its exclusive location, the site is likely to be developed as high-end luxury homes to support housing needs for the residents in the vicinity.

Chencharu Close – 875 units

Source: URA

Chencharu’s status as Yishun’s newest residential precinct will translate into new convenience-driven amenities for residents, both existing and new. Close to 2,000 private residential units are slated for development in Chencharu; this figure is inclusive of its first-ever mixed-use site where 875 private homes could be potentially built, accompanied by a bus interchange and hawker centre.

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