This article was brought to you in conjunction with Hoi Hup Realty and Sunway Developments, and ERA Property Megashow – the premier event for discovering valuable investment opportunities in Singapore.

Terra Hill is a small development with 270 housing units developed through a joint venture between Hoi Hup Realty and Sunway Developments.

The development is located on the incline of Yew Sian Road, with the entrance and the highest point of the development having a 20-metre difference. It has five storeys of residential blocks, with a good elevated view of surrounding infrastructures such as the Port of Singapore Authority (PSA) Pasir Panjang Port, other low-rise housing developments, and lush greenery from parks nearby.

Terra Hill is also the epicentre of several major business nodes, being less than 15 minutes away from these centres by car, which may appeal to professionals looking for a home within the vicinity of their workplaces.

 

Picture 1: Map of Terra Hill and Singapore’s Work Hubs

The development is served by the Circle Line, with Pasir Panjang MRT Station being an eight-minute walk away from Terra Hill. Residents will be connected to Harbourfront MRT and bus Interchange, Buona Vista MRT Interchange and the northern and eastern parts of Singapore through these interchanges.

By 2026, the Circle Line will be completed with three stations being built between Harbourfront and Marina bay MRT stations, closing the circle on the MRT line. This will increase connectivity to several major business nodes including the Central Business District.

Picture 2: Circle MRT Line

Source: Land Transport Authority, ERA Research and Market Intelligence

For residents who mainly drive, the West Coast Highway and the Ayer Rajah Expressway (AYE) are two major expressways that serve the area and connects residents to the rest of the island. A new road connecting South Buona Vista Road to Portsdown Avenue will be built to connect both expressways, making driving in the area easier.

Picture 3: New Road linking West Coast Highway to Ayer Rajah Expressway

Source: Hoi Hup Sunway, ERA Research and Market Intelligence

Sitting on the former site of Flynn Park Condominium, the new and improved condo development has a wider variety of unit types ranging from two bedroom to five-bedroom penthouses, with high quality facilities and installations from reputable brands such as De Dietrich, Gessi, Laufen, and Samsung.

Now, let’s delve into the three reasons why you should buy a Terra Hill property.

Reason 1: 270 exclusive freehold units

Freehold land in Singapore is already limited, and with the high demand for freehold housing from Singaporeans and foreigners, the 270 units in Terra Hill are rare and exclusive, being the one of the two latest freehold launches in the Rest of the Central Region (RCR). Residents will enjoy indefinite exclusivity and tranquillity within the estate. Additionally, properties surrounding Terra Hill include landed housing and other low-rise private developments, adding to the tranquil ambience.

Reason 2: Exit Strategy for owners (Greater Southern Waterfront Development)

As part of the URA Master Plan, the Greater Southern Waterfront will be transformed into a major gateway and location for urban living along Singapore’s southern coast. The waterfront will include over 9,000 new housing units, both public and private, more offices spaces, job opportunities, more entertainment and leisure options. This will be accomplished through the repurposing and revitalisation of current structures such as the Pasir Panjang Terminal. This waterfront precinct is six times the size of Marina Bay, and residents of Terra Hill will be able to see the transformation of the area over time from their homes.

Picture 4: Former Keppel Club site to be redeveloped into HDB flats

The construction of these HDB flats will provide a supply of potential future upgraders for owners of Terra Hill, adding another dynamic element to its existing exit strategy. They will have plenty of new public and private housing options to right size or upgrade to after the development of the Greater Southern Waterfront.

Reason 3: Freehold but has comparable prices to leasehold properties nearby

Given the rarity of freehold units in the RCR and Singapore, the price of units in Terra Hill are generally lower compared to other developments in its region, which make this a very affordable option for those looking for a freehold property in the city fringe.

Chart 1: New Sale Leasehold (99 LH) vs Freehold Properties in District 5 (D5)

Source: URA, ERA Research and Market Intelligence as of 19 Nov 2024

As the price gap between freehold properties and leasehold properties in the area is decreasing, buying Terra Hill would be a good deal since the price paid for this property would be similar to that of a leasehold property in the same area.

And this is not only seen for new sale properties, but also resale properties in D5. Although the average price of a resale freehold property is still more expensive compared to a leasehold property, it is more valuable to buy the freehold property since the prices are very similar, yet the tenures drastically differ.

This could be due to the freehold developments being generally older than the leasehold developments in the area, with Terra Hill being one of just two new launches in D5 in the past two years.

Chart 2: Resale Leasehold vs Freehold Properties in D5

Source: URA, ERA Research and Market Intelligence as of 19 Nov 2024

Here are the units available at Terra Hill.

Consisting predominantly of three-room apartments, Terra Hill’s target audience may likely be investors, young couples or retirees looking to right size from a bigger house. For those who wish to rent instead of buy, rental rates in D5 are comparable with the RCR, with the number of rental contracts in D5 seeing a general increase in the last five years. Expats who work in the city or in key nodes should definitely consider renting Terra Hill, given the comparable rates.

Table 1: Unit types available at Terra Hill

Source: ERAPro, ERA Research and Market Intelligence as at 19 Nov 2024

Chart 4: D5 vs RCR Median Rents

Source: URA, ERA Research and Market Intelligence as of 19 Nov 2024

Now, let’s take a look at some unit types Terra Hill has to offer.

Two Bedroom + Study Floorplan

Built in a “dumbbell” layout, the two-bedroom + study layout offers an open kitchen concept, which may help eliminate underused space within the house. The study is placed in a corner that opens to the living and dining area, offering some privacy. Similarly, the bedrooms are placed at opposite sides of the apartment which offer privacy to the occupants of each room. The apartments in this particular type of units (B3) also have a balcony, which other two-bedders in the development do not have.

Starting from $2,125,000, investors, Dual-Income-No-Kids (DINKs) or individuals looking to buy or rent a small space may be keen to purchase this type of unit.

Four Bedroom Floorplan

Under the prestige collection of units, which are limited to the four to five-bedroom penthouse residences, a private lift lobby will serve individual units, together with several other prestigious fittings in the units.

One other special thing about the four and five room units in Terra Hill is that they have both a dry and wet kitchen, which can help to keep the place organised. Unlike the two- and three-room apartments, the four-bedroom apartments are built in a “corridor” layout, where all the rooms are connected through a common corridor. The bedrooms are placed together at a corner of the apartment, with bathrooms nearer to the bedrooms to increase convenience to the occupants of the room.

Despite the smaller living space, this type if unit may appeal to larger families. These units are priced from $3,503,000.

Interested in learning about Terra Hill? Connect with an ERA Trusted Adviser today for more information.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

Bukit Timah is traditionally known to be a prime residential area consisting predominantly luxury private condominiums and landed homes, as well as being located near the Core Central Region (CCR). But this could soon change over the next 20 to 30 years.

So you see, the Urban Redevelopment Authority (URA) and the Housing & Development Board (HDB) has announced a development plan on May 2024 that will see the Bukit Timah Turf City being redeveloped into a new residential estate.

More importantly, Bukit Timah will see the inclusion of Build-to-Order (BTO) flats for the first time in almost 40 years!

Here is what you need to know about this upcoming estate.

Bukit Timah Turf City had a colourful past

Spanning 176 ha, Bukit Timah Turf City was  once an area dedicated to sports and recreational activities, and most notably horse racing. Known formerly as the ‘Singapore Turf Club’, the site was used for horseracing from 1933 to 1999, and was a popular haunt for avid punters for over 66 years,

According to the Minister of National Development Desmond Lee, “the site was zoned for residential use since 1998, but was leased out for lifestyle and recreational use until the end of 2023”.

Since then, Bukit Timah Turf City has been home to a several sports associations such as a saddle club, country clubs, commercial spaces, and other sporting facilities.

When the Singapore Turf Club shifted to Kranji, the site transformed into a shopping complex serving the immediate residents of the private residential enclave.

Why the Need to Redevelop Turf City?

Currently, the piece of land that was once home to Singapore Turf Club is not being utilised well, and has a high redevelopment potential to make the area lively like it once was. Additionally, Bukit Timah is made up predominantly of private residential properties, available only to a select few, which has cultivated the area’s reputation as a prestigious neighbourhood for the wealthy.

Thus, through integrating public and private housing in the upcoming housing estates, this will foster inclusivity among people of different financial background and help breakdown any stereotypes of the area. Furthermore, those working or schooling in the area would be interested in affordable properties that are conveniently located in an esteemed neighbourhood.

Diversify housing options in Bukit Timah

This area, together with the rest of Bukit Timah, is widely perceived as exclusive due to the surplus of private residential properties there, and its central and accessible geographical location.

Therefore, a greater diversity of housing types would be beneficial to a wider group of people who are looking to live in a centrical location nearer to their workplaces, schools and the CCR. Furthermore, by introducing public housing in this area will allow children from diverse backgrounds to attend popular schools in the area.

Better amenities and connectivity

Bukit Timah Turf City’s rich history can be seen in the many buildings and structures that represent the former Turf Club’s distinct aspects, and will be studied for retention and repurposing to integrated it with the new residential enclaves in the future.

Other amenities will include recreational spaces and sports facilities, that will bring convenience to users and at the same time, showcasing the area’s distinct past. The new neighbourhood will be built around the former grandstand and the current oval shaped open space will be retained for recreational purposes.

As for transport nodes, Bukit Timah Turf City currently has no bus services, and the nearest MRT station is Sixth Avenue. Therefore, improving the connectivity of Bukit Timah Turf City with new bus services and MRT lines would benefit both new and existing residences living in that area.

What Can We Expect with the Upcoming Estate

Bukit Timah Turf City is expected to yield 15,000 to 20,000 residential homes, both private and public, across four distinct neighbourhoods, namely Racecourse Neighbourhood, Stables Commune, Saddle Club Knolls and Tinggi Hills.

To cater to the needs of future residents, these neighbourhoods will feature open public spaces integrated with historic buildings and structures, a variety of amenities including shops, community and recreational facilities, as well as improved transport connections.

Additionally, the Bukit Timah Turf City is planned to be car-lite, pedestrian friendly and well-served by public transport. Due to this, there will be fewer spaces dedicated to car parking to free up space for more greenery and community spaces.

Improved connectivity

The area is currently served by Sixth Avenue MRT Station on the Downtown Line (DTL), which is 15 minutes away from the site. By 2032, Turf City will have its own MRT station on the upcoming Cross Island MRT Line. Residents will be within a 10-minute walk from either MRT station, increasing convenience and connectivity between Bukit Timah Turf City and the rest of the island, without the need for a private vehicle.

Furthermore, new bus services may also be added to allow future residents to have more choices when travelling within and outside the Bukit Timah Turf City estate.

Road improvement works will also be carried out along Dunearn Road, Bukit Timah Road and Eng Neo Avenue to accommodate anticipated traffic to and from future developments at Bukit Timah Turf City. Concurrently, a study is being conducted on the technical feasibility and impact of implementing a new exit ramp from the Pan Island Expressway (PIE) towards Tuas at Bukit Timah Turf City.

BTO flats in Bukit Timah could be a’ golden ticket’ to enter popular schools

After almost 40 years, URA and HDB has announced that HDB flats will be included in this area. The inclusion of HDB flats aims to provide a more affordable housing option for Singaporeans who wish to live in this area.

Existing HDB flats are older and area limited in supply

For HDB buyers looking to stay at Bukit Timah, their only option will be the flats at Toh Yi Gardens estate. With an estimated 2,555 HDB flats in Bukit Timah which were built in 1988, HDB flats in Bukit Timah Turf City will definitely be of high demand, given the area’s prestigious and convenience, as well as the presence of several notable schools in the area.

Parents with young kids will also be eyeing future properties in Bukit Timah Turf City in hopes of securing a placement in popular schools in the vicinity.

Looking at OneMap, assuming there are BTO flats located on the former Grandstand, they could potentially fall within 1-2km radius of popular schools like Methodist Girls’ School, Pei Hwa Presbyterian Primary School, and Raffles Girls’ Primary School.

In Closing

Once deemed as a place that is out of reach for most Singaporeans to live in, the upcoming HDB flats in Bukit Timah Turf City will provide a more diverse living community in Singapore. Both current and new residents will benefit from the new amenities, especially the improved connectivity to the rest of the island via public transport links. “Un-priming” the area can bring about a more equitable community.

That said, existing residents may be may expose to some inconvenience from the upcoming construction works. Regardless of that, existing residents will benefit from the future development in the vicinity.

So, would you consider making Bukit Timah Turf City your next home?

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

For almost anyone doing it for the first time, buying a home in Singapore can be a confusing process. Throw in a bunch of acronyms, like ABSD (Additional Buyer’s Stamp Duty) and MOP (Minimum Occupation Period), and things can get baffling real quick. However, if you’re intending to take out a loan on a new home purchase, two terms that you’ll absolutely need to know are TDSR and MSR.

In their full form, TDSR stands for ‘Total Debt Servicing Ratio’, whereas MSR means ‘Mortgage Servicing Ratio’, and they’re both Government initiatives to promote responsible borrowing. Below, we explain how TDSR and MSR came about, their purpose, and how to determine your housing affordability using both ratios.

What exactly are TDSR and MSR? And how did they come to be?

Introduced by the Monetary Authority of Singapore (MAS) in 2013, the TDSR is a framework applying to all property loans extended by banks to borrowers. Its rollout is to promote prudency amongst individuals taking loans, so that they don’t end up borrowing more than they could afford.

Therefore, the TDSR, which limits debt repayments to a certain percentage of gross monthly income, is first and foremost a safety net. When the TDSR was first introduced in 2013, borrowers were allowed to spend up to 60% of their gross monthly income on loan servicing.

Subsequently, that limit was tightened to 55% in 2021. Put differently, this means that under TDSR guidelines, a borrower should have a total debt value of under 55% of his or her monthly salary to be able to take out a mortgage.

Similarly, for the MSR, it places a cap on the percentage of monthly income that borrowers can use for mortgage repayments. In 2013, the MSR threshold was set at 30% for HDB flat purchases that are financed by bank loans, and it has stayed that way since.

How are TDSR and MSR applied differently for home purchases?

If there’s a key difference between TDSR and MSR that’s worth highlighting, it’s that TDSR applies to all types of housing loans, whereas MSR applies only to loans for buying an HDB flat OR an Executive Condominium (EC) that still hasn’t completed its MOP.

Hence, supposing that you’re a homebuyer who wishes to take out a home loan for an HDB flat or EC purchase, you’ll have to comply with both the MSR and TDSR limits. The differences of both ratios are summarised in the table below.

Table 1: Summary of the differences between TDSR and MSR

	TDSR	MSR
Definition	Refers to the portion of a borrower’s gross monthly income that goes towards repaying the monthly debt obligations, including the loan being applied for	Refers to the portion of a borrower’s gross monthly income that goes towards repaying all property loans, including the loan being applied for
Properties that this loan applies to	All property types	HDB flats and ECs only
Threshold	55% of borrower’s gross monthly income	30% of borrower’s gross monthly income
Debt Obligations included	All debt obligations (e.g. Car loans, student loans)	Only property loans (Including the one being applied for)
How it is calculated	TDSR = (Total monthly debt)/(Gross monthly income) x 100%	MSR = (Total monthly mortgage repayment(s))/(Gross monthly income)  x 100%

It’s also worth bringing up (again) that both TDSR and MSR account for different financial considerations. TDSR factors in all of a borrower’s unsettled debt, including loans taken out for housing, cars, education, credit cards, and so forth.

In comparison, MSR is more straightforward as it’s solely calculated on a borrower’s monthly income. For borrowers buying an HDB or EC unit, their household monthly income will first be assessed using the MSR on their loan quantum to calculate the maximum amount they can repay monthly.

Thereafter, buyers will be further subject to a second round of assessment, which will consider all their debt repayments are within the TDSR limits. Should the borrowers have outstanding debts such as car loans, it may affect the amount they borrow and they may not get the maximum MSR loan amount.

How do you calculate MSR based on your household income?

In general, a borrower’s MSR can be derived by dividing their total monthly mortgage repayments by their gross monthly household income.

Assuming Party A has a gross monthly income of $10,000, his MSR calculations would be so…

$10,000 x 30% = $3,000

In another scenario, if Party A has an existing debt of $4,000 and a gross monthly income of $10,000, his MSR calculations would be so…

Maximum MSR loan amount = $10,000 x 30% = $3,000

Maximum TDSR loan amount = $10,000 x 55% = $5,500

Maximum MSR loan amount that can be taken to meet TDSR limit = $5,500 – $4,000 (Existing debt) = $1,500

In other words, even though Party A’s maximum mortgage affordability is $3,000 (based on the current MSR threshold of 30%), their existing debt of $4,000 limits their borrowing capacity to just $1,500.

To gauge the estimated loan quantum a household can secure based on MSR, one can refer to the sensitivity analysis table below. With a monthly household income of $16,000, a family can afford a home of up to $1.01mil, which works out to the price of a 2-room condo in the OCR.

Table 2: MSR Sensitivity Analysis- Based on Value Of Property on Household Income and Mortgage Rates for a 25 Year Loan

		Interest Rates
Household Income	Monthly Payment	3.00%	3.50%	4.00%	4.50%
$10,000	$3,000	$633,000	$600,000	$569,000	$540,000
$11,000	$3,300	$696,000	$660,000	$626,000	$594,000
$12,000	$3,600	$760,000	$720,000	$683,000	$648,000
$13,000	$3,900	$823,000	$780,000	$739,000	$702,000
$14,000	$4,200	$886,000	$839,000	$796,000	$756,000
$15,000	$4,500	$949,000	$899,000	$853,000	$810,000
$16,000	$4,800	$1,013,000	$959,000	$910,000	$864,000
$17,000	$5,100	$1,076,000	$1,019,000	$967,000	$918,000
$18,000	$5,400	$1,139,000	$1,079,000	$1,024,000	$972,000
$19,000	$5,700	$1,202,000	$1,139,000	$1,080,000	$1,026,000
$20,000	$6,000	$1,266,000	$1,199,000	$1,137,000	$1,080,000

Source: ERA Research and Market Intelligence (*Rounded to the nearest thousand)

How do you calculate TDSR?

Similar to MSR, it’s possible to derive a borrower’s TDSR with the help of a formula, which is as follows…

So, for instance, if Party B earns a fixed income of $10,000 a month and owes $2,000 in car loans as well as $1,000 in credit card loans, their maximum remaining capacity for monthly mortgage payments, based on the current TDSR threshold of 55%, would be…

Maximum loan based on TDSR limits = $10,000 X 55% = $5,500

Maximum remaining borrowing capacity = $5,500 – car loan ($2,000) – credit card loan ($1,000) = $2,500

However, if a borrower’s income varies from month to month, their TDSR can be slightly trickier to calculate. And that’s because they’re only permitted to use 70% of their gross monthly income for TSDR calculations. Or as MAS puts it: “financial institutions are required to apply a haircut of at least 30% to all variable income (e.g. bonuses) and rental income”.

Therefore, if we’ve Party C who has a similar debt situation as Party B, along with a gross monthly income of $10,000 – consisting of a fixed component of $7,000 and $3,000 in commissions – their TDSR calculations will look like this…

Maximum loan based on TDSR limits = [$7,000 + ($3,000 X 70%)] X 55% = $5,005

Maximum remaining borrowing capacity: $5,005 – car loan ($2,000) – credit card loan ($1,000) = $2,005

To gauge the estimated loan quantum a household can secure based on TDSR, we can refer to the sensitivity analysis table below. Under TDSR, a family earning a monthly household income of $16,000 can purchase a home of up to $2.4mil which is a rough cost for a sizable 3-bedroom OCR condo presently.

Table 3: TDSR Sensitivity Analysis– Max Value of property value based on household income and mortgage rates for a 25 Year Loan

	Interest Rates
Household Income	Monthly Payment	3.00%	3.50%	4.00%	4.50%
$10,000	$5,500	$1,547,000	$1,465,000	$1,390,000	$1,320,000
$11,000	$6,050	$1,702,000	$1,612,000	$1,529,000	$1,452,000
$12,000	$6,600	$1,856,000	$1,758,000	$1,668,000	$1,584,000
$13,000	$7,150	$2,011,000	$1,905,000	$1,807,000	$1,716,000
$14,000	$7,700	$2,165,000	$2,051,000	$1,946,000	$1,848,000
$15,000	$8,250	$2,320,000	$2,198,000	$2,084,000	$1,980,000
$16,000	$8,800	$2,475,000	$2,344,000	$2,223,000	$2,111,000
$17,000	$9,350	$2,629,000	$2,491,000	$2,362,000	$2,243,000
$18,000	$9,900	$2,784,000	$2,637,000	$2,501,000	$2,375,000
$19,000	$10,450	$2,939,000	$2,784,000	$2,640,000	$2,507,000
$20,000	$11,000	$3,093,000	$2,930,000	$2,779,000	$2,639,000

Source: ERA Research and Market Intelligence (*Rounded to the nearest thousand)

Scenarios where the TDSR Ratio is not applied

Although it’s safe to say that TDSR and MSR will almost certainly be applied to the majority of home loan calculations, there are certain scenarios where borrowers can be exempted from TDSR rules too. For example, TDSR is currently waived for owner-occupiers when they refinance their housing loans. Likewise, bridging loans where the outstanding balance will be repaid within 6 months are also exempted from TDSR rules.

The same applies to mortgage equity withdrawal loans too, provided the Loan-to-Value ratio, combined with any other loans secured against the same property, does not exceed 50%. Lastly, another important term to know is the Loan-to-Value ratio.

Loan-to-Value Ratio

The LTV ratio is the percentage of the property value an individual is allowed to borrow to finance their home mortgage. Implemented by the government, this ratio serves to limit how much money can be borrowed by individuals to ensure the borrower is able to repay all their loans and not over-leverage.

The LTV limit for an individual with no existing housing loans is capped at either 75% or 55%, with a minimum cash down payment of 5% or 10% respectively. The table below will delineate the differences in LTV limits based on the number of outstanding housing loans.

Table 4: LTV Limits Applied based on Outstanding housing loans

Number of Outstanding Housing Loans	LTV Limit	Minimum Cash Down Payment
0	75% or 55%	5% (for 75% LTV) or 10% (for 55% LTV)
1	45% or 25%	25%
2 or more	35% or 15%	25%

Source: MAS, ERA Research and Market Intelligence

The lower LTV limit should be applied if the loan tenure exceeds 30 years, or 25 years for HDB flats, or if the loan period extends beyond the borrower’s age of 65 years. For HDBs, the maximum loan an individual can take to finance their flat has been tightened.

With effect from 20 August 2024, the Loan-to-Value (LTV) limit for HDB loans will be lowered from 80% to 75%, akin to mortgage loans granted by financial institutions. The revised HDB LTV limit will apply to complete resale applications received by HDB on or after 20 August 2024.

A complete resale application is one where HDB has received both the sellers’ and buyers’ portions of the application. For applicants who were successful in the June BTO exercise, the LTV limit for their housing loans will not be affected and will remain at 80%.

Keen to learn more about how this applies to your homebuying journey? Or about TDSR and MSR in general? Feel free to speak to an ERA Trusted Adviser today!

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval. 

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

Site	Type of Site	Area (ha)	Proposed GPR	Estimated No. of Residential Units	Estimated No. of Hotel Rooms	Estimated Commercial Space (sqm)	Estimated Launch Date	Agency
Tampines Street 95 (EC)	Residential	2.25	2.5	560	0	–	Aug-2024	HDB
Faber Walk	Residential	2.58	1.4	400	0	–	Sep-2024	URA
Lentor Gardens	Residential	2.06	2.1	500	0	–	Oct-2024	URA
River Valley Green (Parcel B)	Residential	1.17	3.5	580	0	500	Oct-2024	URA
Bayshore Road	Residential	1.05	4.2	515	0	–	Nov-2024	URA
Media Circle (Parcel A)	Residential	0.81	3.7	345	0	400	Nov-2024	URA
Media Circle (Parcel B)	Residential	0.97	4.3	485	0	400	Nov-2024	URA
Chuan Grove	Residential	1.58	3.0	550	0	–	Dec-2024	URA
Holland Link	Residential	1.72	1.4	240	0	–	Dec-2024	URA
Chencharu Close	Commercial & Residential	2.94	3.2	875	0	13,000	Sep-2024	HDB

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

Site	Type of Site	Area (ha)	Proposed GPR	Estimated No. of Residential Units	Estimated No. of Hotel Rooms	Estimated Commercial Space (sqm)	Estimated Launch Date	Agency
Senja Close (EC)	Residential	1.01	3.0	295	0	0	Available	HDB
Marina Gardens Lane	Residential	0.61	5.6	400	0	0	Oct-2024	URA
Woodlands Drive 17 (EC)	Residential	2.58	1.7	435	0	0	Oct-2024	HDB
Holland Plain	Residential	1.58	1.8	275	0	0	Dec-2024	URA
River Valley Green (Parcel C)	Residential	1.15	3.5	470	0	0	Dec-2024	URA
Punggol Walk	Commercial	1.00	1.4	0	13350	0	Available	URA
Marina Gardens Crescent	White	1.73	4.2	775	6000	0	Available	URA
Woodlands Avenue 2	White	2.75	4.2	440	78000	0	Available	URA
River Valley Road	Hotel	1.02	2.8	0	2000	530	Available	URA

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.

Disclaimer

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers. For avoidance of doubt, ERA Realty Network and its salesperson accepts no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.