Category Archives: Land Sales

12 industrial sites released under Government land sales programme

Twelve industrial sites have been released under the Industrial Government Land Sales (IGLS) Programme for the second half of 2016, amid a slowing economic outlook and weakening demand for factory space.

There will be seven sites on the confirmed list and five sites on the reserve list, with a total site area of 11.7 hectares, the Ministry of Trade and Industry said on Tuesday (Jun 28).

Compared to the first half of this year, when 10 sites with a total of 12.24 hectares were released, there are more sites being released now but with lesser space.

Prices and rentals for industrial space in Singapore have been on the decline, falling by about 5 per cent year-on-year in the first quarter of 2016, according to figures released by JTC.

It was the fourth consecutive quarter where prices and rentals declined on both a yearly and quarterly basis, bringing them to 2012 levels, JTC said.

All seven sites on the confirmed list for the second half of 2016 have a tenure of 20 years and are located at Tampines Industrial Drive, Tuas South Link 2 and 3, and Woodlands Industrial Park.

The five sites on the reserve list have a tenure of either 20 or 30 years, and are located at Tuas Bay Close, Tuas South Link 1 and 3, and Woodlands Height.

A site on the reserve list will be released for sale if an application is submitted for the site to be put up for tender with a minimum purchase price that is acceptable to the Government. It could also be put up for sale if there is sufficient market interest.

Source : Channel NewsAsia – 28 Jun 2016

Executive Condominium site at Sengkang goes on sale

An Executive Condominium (EC) site in Sengkang which could yield about 653 homes has been released for public tender, the Housing and Development Board (HDB) said on Wednesday (Jun 29).

The 21,014.6 sqm site in Anchorvale Lane is located beside Punggol Reservoir and can be accessed via Tongkang LRT station.

The site is on the confirmed list of the Government Land Sales Programme for the first half of this year, which means the site is put up for sale even if there are no initial expressions of interest by developers.

The tender for the 99-year leasehold site will close at 12pm on Aug 23, HDB said.

Source : Channel NewsAsia – 29 Jun 2016

4 Confirmed List sites launched for sale, could yield 2,170 private homes

The Ministry of National Development (MND) announced on Wednesday (Jun 8) that it has launched four Confirmed List sites and 11 Reserve List sites under the Government Land Sales (GLS) programme for the second half of 2016.

The Confirmed List sites include three private residential sites at Fernvale Road, Perumal Road and West Coast Vale, and a commercial and residential site at Upper Serangoon Road, according to MND.

Together, the four Confirmed List sites will provide 2,170 private residential units, higher than the 1,560 units in the Confirmed List for the first half of the year. However, it is close to the total supply of 2,130 units for the first half of the year, where a Reserve List site was triggered in February.

The Confirmed List sites will also be able to yield 15,500sqm gross floor area in commercial space. This is mainly from the predominantly residential site at Upper Serangoon Road, and will provide retail amenities for the future live-in population at the Bidadari HDB estate, the press release said.

The Reserve List comprises seven private residential sites, including one Executive Condominium (EC) site, one commercial and residential site, two commercial sites and one White site. These sites can yield about 5,380 private residential units, including 780 EC units.

The Reserve List includes three sites at Beach Road, Woodlands Square and Central Boulevard for mixed-use developments comprising mainly office space. These sites will allow developers to initiate the development of more office space if they assess that there is demand, MND said. In total, the Reserve List may yield 261,600sqm gross floor area in commercial space.

Confirmed List sites go on sale regardless of interest from developers, while Reserve List sites are triggered for a public tender only if a developer makes an acceptable opening offer.

Overall, the total supply of 7,550 units for the GLS for the second half of 2016 is close to the 7,420 units in the GLS for the first half of the year, MND said.

Source : Channel NewsAsia – 8 Jun 2016

Land supply for private homes may rise, reversing trend

THE downtrend in the supply of state land in the confirmed list for private housing (excluding executive condos) development may be reversed in the second-half of this year. Some property consultants predict a moderate rise in supply, citing developers’ strong appetite for land replenishment and a recent pick-up in private home sales.

The timing of any potential tweaking of cooling measures would also come into play in crafting the state’s land sales strategy. “The cards are in the hands of the government. They will have an idea of when they will ease the measures; so they would adjust the GLS (Government Land Sales) supply quantum in tandem,” says an industry observer.

The Ministry of National Development (MND) is expected to continue channelling commercial land supply predominantly through the reserve list in the H2 2016 GLS Programme, given the glut as well as structural changes affecting demand for office and retail space. Sites on the reserve list are launched for tender upon successful application by a developer, unlike confirmed-list sites, which are launched according to schedule regardless of demand.

Property consultants generally forecast a continuation of the freeze in supply of hotel sites, although at least one analyst warns that a potential shortage of hotel rooms could build up a few years down the road if this policy continues much longer.

In its first-half 2016 GLS Programme, MND has supplied land for 925 private residential (non-executive condo) units through the confirmed list. Despite soft prices and weakening rents, Knight Frank Singapore research head Alice Tan and R’ST Research director Ong Kah Seng think the authorities could raise slightly this quantum for the H2 2016 slate – to cater to developers’ hunger for restocking land as seen at state tenders. Ms Tan predicts the supply will be 1,000-1,200 units and Mr Ong, 1,075 units.

Another factor that could support a moderate hike in confirmed-list supply is the pick-up in private home sales since March. That said, JLL national director Ong Teck Hui argues that MND is unlikely to step up the confirmed list “in a significant manner” – until it is more certain of a market recovery, going by what it has done in the past.

Indeed, most property consultants expect MND to pretty much maintain the pace of (non-EC) private residential land supply on both confirmed and reserve lists in the coming programme.

On the reserve list, MND is supplying land for 5,035 (non-EC) private homes in H1 2016.

CBRE Research’s head of Singapore and South-East Asia Desmond Sim recommends that maintaining the quantum of non-EC residential land supply on both confirmed and reserve lists “is sufficient to sustain developers’ hunger for land, to provide a level playing field for developers to build up their land banks and for the market to absorb unsold stock”.

He notes that the number of unsold private homes in uncompleted projects with planning approvals has eased to 22,370 units as at end-Q1 2016, from 27,061 units a year earlier and the high of 42,045 units at end-Q1 2009 during the global crisis. It is noteworthy that there were no residential sites on the confirmed list in H1 and H2 2009.

However, most analysts remain concerned about the high volume of unsold ECs (a public-private hybrid housing form), which stood at 6,520 units as at end-Q1 2016. Knight Frank’s Ms Tan expects a moderation of EC land supply in the confirmed list to 500-600 units for H2 2016, from 635 units in H1 2016.

Savills Singapore research head Alan Cheong and CBRE’s Mr Sim went so far as to recommend that no EC land be supplied on the confirmed list over the next six months; EC sites should be offered only through the reserve list. “This might help to stem the growing pressure from the increasing stock of unsold EC units,” says Mr Sim.

Giving a contrarian view, however, R’ST’s Mr Ong made a case for an increase in supply of EC land on both lists. He pointed to an improvement in the volume of EC sales by developers in H2 last year after they trimmed average prices to around S$750-780 per square foot – from S$800 psf or more during 2014 and H1 2015.

The full impact on demand from last August’s increase in the income ceiling for those buying new ECs has yet to flow through, according to him. “As long as new EC projects are priced 20-25 per cent below new 99-year private condos in equivalent locations, there is a value proposition for ECs.”

R’ST’s Mr Ong suggests that the authorities could push out new EC sites in relatively unsaturated locations such as Jurong West (given its proximity to the Jurong Innovation District) and Bukit Panjang (to leverage on the opening of the Downtown Line 2 MRT stations last December) and possibly, the up-and-coming Bidadari area.

He also recommends Bukit Panjang and Bidadari for new private condo sites. Bidadari would also be a good location for a mixed-use (com-mercial/private residential) site.

OrangeTee’s senior manager for research and consultancy, Wong Xian Yang, reckons the authorities could release a private housing site next to the upcoming Canberra Station on the North-South Line.

In H1 2016, MND has supplied land for 11,000 square metres gross floor area (GFA) of commercial space through the confirmed list; it is offering reserve-list sites that can potentially yield 261,580 sq m GFA which developers may take advantage of, if they envisage demand. With the office and retail property markets reeling from an oversupply, most players expect MND to stick to the current formula of minimising confirmed-list supply in H2. Mr Wong reckons that any supply of commercial space on the confirmed list will be via mixed-development sites rather than pure office or pure retail sites – as is the case currently.

Agreeing, CBRE’s Mr Sim noted that mixed-use sites have garnered strong interest at state tenders

Analysts generally expect the authorities to keep the white site along Central Boulevard in the CBD (primarily for office use) on the reserve list. However, some see the commercial and residential site near Holland Village MRT Station, currently on the reserve list, being moved to the confirmed list to spur the development of the Holland Village Extension.

Savills’ Mr Cheong says that owing to a host of factors ranging from structural changes impacting industries to disruptive technologies bypassing the traditional purveyors of goods and services, the traditional demand growth engines for office and retail space are losing steam.

Office demand has been hit by downsizing in the financial, commodity and marine sectors, while tech companies are being lured to business parks. Brick-and-mortar retailers are affected by online shopping and a leakage of shopper dollars to overseas due to budget airlines. “The traditional adage that if we build, they (tenants) will come, may need rethinking or it may risk stalling the market. Therefore this time round, the government is likely to handle the supply-side policy with even greater finesse and err on the side of caution,” says Mr Cheong.

MND has not offered any hotel sites since the start of 2014. HVS Asia Pacific managing partner Chee Hok Yean believes the authorities may resume the sale of hotel sites in H2 2016 or, more likely, in H1 2017.

She notes that the bulk of new hotel room completions on the island will take place from 2016 to 2017 – and this will take about two years to be absorbed.

“From acquiring a site to opening the hotel will take some two to two-and-a-half years. Therefore by the time the sales programme is resumed in H2 2016/H1 2017, the new rooms supply will come on-stream only from 2019/2020 onwards. You don’t want a situation where if the global economy recovers and tourism improves, there is a shortage of hotel rooms in Singapore and rates shoot through the roof,” she cautions.

URA launches tender for residential site at Martin Place

The Urban Redevelopment Authority (URA) has launched a residential site at Martin Place for sale by public tender today under the Confirmed List of 1st Half 2016 Government Land Sales (GLS) Programme. This site can potentially yield about 450 residential units.

The 99-year lease, 15,936.1 square metre site is located within a well-established residential area, with existing condominiums such as Martin Place Residences and Martin 38. It is also located near the future Great World MRT station.

The tender for the land parcel will close at 12 noon on 28 June 2016.

Trustees seek bids for 25,741-sq-ft Cuscaden Road redevelopment site

THE trustees of an estate that holds a 25,741-square-foot freehold site on the ultra-prime Cuscaden Road are putting the property up for sale by tender.

The site has a gross plot ratio of 4.2 times, which implies a gross floor area of about 108,112 square feet. Although a detached house currently sits on the site, the site has been zoned as “hotel” in the 2014 Master Plan.

JLL, which has been engaged to market the property, said the Urban Redevelopment Authority has expressed willingness to also consider a 20-storey residential project. The first floor could also be used as commercial space.

The site sits next to St Regis Residences.

JLL said the vendors expect offers in the region of S$160 million to S$170 million, which would work out to between S$1,480 and S$1,572 per square foot (psf) of allowable gross floor area excluding development charges. The deadline for the tenders is 2.30pm, May 12, 2016.

The last sale of a prime high-rise residential development site in Singapore took place about three years ago when Swire Properties bought Hampton Court at Draycott Park for S$155 million, JLL said. That transaction was reported at S$2,526 psf on allowable gross floor area, inclusive of development charges.

There were two sales of freehold hotel and hospitality sites in the Orchard Road area over the past three years. Thong Sia Building sold for S$380 million, or about S$2,431 psf of allowable gross floor area, in 2015. In 2013, the 308-room Grand Park Orchard Hotel sold for S$1.16 billion, or S$4,640 psf on the existing gross floor area.

“A purchaser could redevelop the site into a mid to upscale hotel with around 300 rooms, depending on the design,” JLL international director Karamjit Singh said in a statement. “Alternatively, a residential developer may be able to accommodate as many as 185 small ‘shoebox’ apartments with an average size of 540 sq ft, or 50 units of 2,000 sq ft apartments, depending on the configuration of the building and subject to approval from the relevant authorities.”

URA launches tender for commercial & residential site at Bukit Batok

A commercial and residential site at Bukit Batok West Avenue 6 has been launched for sale under the Confirmed List of the First Half 2016 Government Land Sales Programme.

The site can potentially yield about 425 homes and a maximum gross floor area of 6,000 sqm for commercial use, the Urban Redevelopment Authority (URA) said on Wednesday (Mar 30).

The tender for the site will close at noon on May 24. More details are available at the URA website.

Industrial sites at Tampines and Tuas launched for sale

One Confirmed List site at Tampines North Drive 3 (Plot 3) and one Reserve List site at Tuas South Link 1 (Plot 1) have been launched for sale by public tender, JTC announced on Tuesday (Feb 23).

The 0.58 ha site at Tampines North Drive 3 (Plot 3) has a 20-year tenure with a maximum permissible gross plot ratio of 2.5. The tender for this site closes on Apr 19, 11am.

On the other hand, the 3.33 ha site at Tuas South Link 1 (Plot 1) has a 30-year tenure with a maximum permissible gross plot ratio of 2.0. The tender for this site closes on Apr 5, 11am.

Both sites are zoned for Business-2 development and are being launched under the first half 2016 Industrial Government Land Sales Programme, JTC said.

It added that the launch of the sites is part of the Government’s efforts to offer more choices for industrial development.

Source : Channel NewsAsia – 23 Feb 2016