Under the Reserved List of the 2H2024 GLS Programme, the Urban Redevelopment Authority (URA) has released two residential Government Land Sale (GLS) sites on Dec 3. Developers can now apply for the Holland Plain and River Valley Green (Parcel C) sites and the government will trigger a sale if a developer indicates a minimum price that is accepted. In addition, a Reserved List site may also be considered for a tender launch if more than one developer submits a minimum price close to the government’s reserve price.
The Holland Plain GLS site spans approximately 169,175 sq ft and has a maximum gross floor area (GFA) of around 304,522 sq ft, which can potentially accommodate 280 residential units. This site has a 99-year leasehold and is located next to the Holland Link GLS site, which was recently launched for tender on Dec 3. The Holland Plain site property can accommodate an estimated 230 units.
According to Huttons Asia CEO Mark Yip, the response to the Holland Link GLS site will dictate the likelihood of the Holland Plain site being triggered for sale. He believes that developers would want to see how the market reacts before submitting a minimum price, and the tender for the latter site closes in July 2025.
Next to the Great World MRT Station on the Thomson-East Coast Line, the River Valley Green (Parcel C) site is a 99-year leasehold property that covers 123,964 sq ft, with a maximum GFA of 433,882 sq ft. This site can accommodate an estimated 470 new housing units.
Yip forecasts that the River Valley Green (Parcel C) site is also unlikely to be triggered for sale, given that there is an existing tender for the neighbouring River Valley Green (Parcel B) plot which will close in February next year. This site can potentially yield 580 units, including 220 long-stay serviced apartments.
The River Valley Green (Parcel A) was awarded to Winchamp Investment, a subsidiary of Wing Tai Holdings, in June after submitting the top bid of $464 million, or $1,325 psf per plot ratio (psf ppr). This site will be developed into a residential development with more than 400 units.
Investing in real estate is a strategic decision, and the location plays a crucial role in its success. This is especially true for the city-state of Singapore. When looking for a condo in Singapore, it is essential to consider its location carefully. Condos that are situated in central areas or close to important amenities like schools, shopping centers, and public transportation hubs have a higher chance of appreciating in value. Some of the prime locations in Singapore that have consistently shown growth in property values include Orchard Road, Marina Bay, and the Central Business District (CBD). Families also prioritize condos in these areas due to their proximity to good schools and educational institutions, making them highly desirable investments with excellent potential.
In April, Zion Road (Parcel A) was awarded to a joint venture between City Developments and Mitsui Fudosan after submitting the sole bid of $1.107 billion ($1,202 psf ppr). The joint venture intends to create a mixed-use project at the site, featuring around 740 residential units, a retail podium, and a block with 290 rental apartment units.
Meanwhile, Allgreen Properties clinched the Zion Road (Parcel B) site in August for $730.09 million ($1,304 psf ppr). This site is capable of accommodating approximately 610 residential units.
As there is already a significant supply of upcoming units from the three aforementioned sites, developers will likely have “little incentive” to trigger a sale for the River Valley Green (Parcel C) site, according to Yip.