Government Releases Four Residential Sites Under 2H2024 Gls Programme
The government has released four new sites for sale under its 2H2024 Government Land Sales Programme, according to a joint press release issued by the Urban Redevelopment Authority (URA) and Housing Development Board (HDB) on Oct 17.
The impressive sales records achieved by Tenet in the previous year seem to have bolstered the confidence of developers towards the potential of the location. This is evident from the swift uptake of 616 units from the development, with an average price of $1,382 per square foot as of October 10. The Parcel B site’s strategic positioning in a well-established neighborhood, in close proximity to the Tampines North MRT Station and the future mixed-use development at Tampines Avenue 11, has contributed to its appeal. Furthermore, with the highly-anticipated Aurelle of Tampines also being part of the neighborhood, the area’s attraction is expected to soar even higher.
Two of these sites, Lentor Gardens and River Valley Green (Parcel B), have been launched for sale under the Confirmed List, while the remaining two, Marina Gardens Lane and Woodlands Drive 17, are available for applications under the Reserve List.
The Lentor Gardens site, which covers 222,161 square feet, is the seventh plot to be launched in the developing Lentor Hills Estate. It is zoned for residential development and has the potential to yield approximately 500 units. The area already has several projects, including Lentor Modern, Hillock Green, Lentoria, Lentor Hills Residences, Lentor Mansion, and an upcoming development by CSC Land, Hong Leong Holdings’ Intrepid Investments and GuocoLand. The 2H2024 Government Land Sales Programme also includes a site at Lentor Gardens on the Reserve List, which has yet to be triggered.
According to Lee Sze Teck, senior director of data analytics at Huttons Asia, only 352 units (14.2%) of the 2,477 residential units launched in the area have remained unsold. He believes that this shows buyers’ receptiveness towards living in the Lentor private residential enclave and should alleviate concerns of a supply overhang.
Huttons predicts that there could be between one to three bidders for the site, with a top bid of $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 126,325 square feet and has the potential to accommodate around 475 residential units. It is situated near the Great World MRT Station along the Thomson-East Coast Line (TEL). Marcus Chu, CEO of ERA Singapore, notes that the site is well-connected to major roads and expressways such as Central Expressway (CTE) and Ayer Rajah Expressway (AYE), while the nearby Great World MRT Station provides easy access to the Orchard Road shopping district.
Lee notes that there is already a pipeline of incoming residential housing in the area. Two other sites have been awarded this year and are expected to be launched next year, potentially yielding a total of 1,120 residential units. Furthermore, another nearby site at River Valley Green (Parcel C) is set to be launched in December 2024, according to URA. Should this site be awarded, Lee predicts that the area could see almost 2,200 units for sale over the next few years.
As a result, developers are likely to be cautious in their bids for the site, given the expected supply of new private units entering the market in the area. 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) will close on February 7, 2025.
If the EC site at Woodlands Drive 17 is triggered for sale and awarded, the new development could yield 420 executive condominium (EC) units. The site spans 271,326 square feet and has a maximum gross floor area of 461,255 square feet. It is situated close to Woodlands South MRT Station on the TEL, providing easy access to Woodlands Regional Centre and the upcoming RTS link to Johor Bahru.
It would also be the first EC site launched for sale in Woodlands South since 2013. The last EC site to have been launched for sale in the area was developed into the 561-unit Bellewoods.
Lee estimates that 6,500 Housing and Development Board (HDB) flats in Woodlands were completed from 2016 to 2018. He believes that this could contribute to the pool of potential buyers for a future EC development in the vicinity.
The other Reserve List site located at Marina Gardens Lane spans 64,663 square feet and has a maximum gross floor area of 362,119 square feet. Zoned for residential with commercial at the first storey, it is situated close to the upcoming Marina South MRT station on the TEL.
Lee is of the opinion 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. The site is close to another GLS site at Marina Crescent, also on the Reserve List.
The Marina Crescent site was moved to the Reserve List earlier this year after the sole bid of $770.5 million ($984 psf ppr) that was submitted by GuocoLand, Intrepid Investments, and TID was assessed to be too low by URA. The bid price reflected a nearly 30% haircut off the land rate of $1,402 psf ppr that a Kingsford Group-led consortium paid for a neighbouring plot in Marina Gardens Lane in July 2023.
