Government Offers More Land For Private Housing, Analysts Worry It May Not Be Sufficient

The Ministry of National Development (MND) announced on 29 June that 16 sites have been added to the list of land made available as part of the Government Land Sales Programme. This is to cater to the increasing demand of home buyers and to deal with the decreasing number of unsold homes.

There are 6 sites on the confirmed list, of which 4 are private residential sites and 2 commercial and residential sites. Together they can yield 2,840 private home units and this is a 20% increase from the 2,330 units in the first half of 2017. The private residential sites include an executive condo in Sumang Walk, Chong Kuo Road, Handy Road and Hillview Rise. The commercial and residential sites are Sengkang Central and Holland Road, both of which will provide about 1,370 home units and 26,800 sq metres of commercial space.

The remaining 10 sites are on the reserve list and they comprise 9 private residential sites and 1 commercial site. In total, they can yield 5,285 private home units and 56,790 sq metres of commercial space.

Despite the increase of about 20% more land made available to developers, analysts worry that it may still be insufficient and unable to abate developer demands. This comes in light of the surge in the numbers of bidders and the bullish bids made recently at land tenders.

Analysts note that sites at Handy Road, Holland Road and Sengkang Central will be highly contested while the private residential sites of Jiak Kim Street, Fourth Avenue and Cuscaden Road on the reserve list will appeal most to developers due to their prime locations.

Sites on the confirmed list will definitely be put up for sale and those on the reserve list will only be launched if and when a developer commits to an acceptable bid.