SINGAPORE, 8 December October 2022 – Mr Lam Chern Woon (蓝振文), Head of Research and Consulting at EDMUND TIE comments on 1H 2023 Government Land Sales (GLS) programme.
The first half of 2023 Government Land Sales Programme (1H 2023 GLS) released by the MND today reflects the government’s optimism in the overall health of the residential and commercial real estate sectors. Both the residential and commercial sectors will see higher supply in the Confirmed List of 1H 2023 GLS vs 2H 2022 GLS, although the supply in the Reserve Lists remains broadly unchanged.
The 1H 2023 GLS is a game changer in at least three aspects:
- Besides sites carried over from the previous Reserve List, there are four new sites on the Confirmed List, including two white sites. The sites are largely in suburban locations, which are to support decentralisation initiatives and cater to sustained demand driven by organic growth and tightened housing budgets. Two new sites at Champions Way and Media Circle aim to meet pent-up housing demand in the Woodlands and one-north areas.
The release of two White sites in the Confirmed List, at Marina Gardens Crescent and Jurong Lake District, reinforced the government’s intention to supply more living options in Marina South precinct over time and to build up the largest regional business district (Jurong Lake District) as a vibrant mixed-use precinct, allowing developers to have a greater hand in adapting and meeting market demand needs. The injection of these sites and the associated space quantums are well calibrated to avoid an oversupply situation. The white sites are likely to attract keen bidding interest, given the greater leeway to curate new residential and business communities.
- The release of a short-term 30-year lease tenure site at Punggol is likely a testbed move to access the market reception to short tenure sites, in response to increasingly short business cycles and dynamic trends. The idea of shorter-lease sites was most recently mooted at the Draft Master Plan 2019.
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