Huttons’ comments on 2H 2023 GLS programme

21 June 2023

With the collective sales market staying anemic, the Government has stepped up its supply of land to meet the strong demand for housing in its 2H 2023 GLS programme. The supply of dwelling units on the Confirmed List of 2H 2023 GLS programme jumped to 4,600, the highest level since 2H 2012 where 4,825 units were offered. This is a steep 35.7% increase, one of the steepest increases in percentage terms since 2H 2021 where supply went up by more than 60%.

The sites on the Confirmed List are going to attract keen interest from developers. Many of the sites are either directly connected to a MRT station or within a short walk to a MRT station. Several are in new locations where there had not been any supply for many years.

It has been 8 years since the last GLS for private housing in Lorong 1 Toa Payoh. The Lorong 1 Toa Payoh site sits in the mature estate of Toa Payoh and is a short walk to Braddell MRT station. With 5-room flats at The Peak @ Toa Payoh exceeding $1 million and quite a number of recently MOP-ed flats exceeding $800,000, there is a sizeable pool of potential HDB upgraders. The top bid could be more than $1,200 psf ppr.

The Orchard Boulevard site will have direct access to Orchard Boulevard MRT which adds to the appeal of staying in Orchard. It is just 1 station away from the Orchard Road shopping belt. With the cooling measures crimping demand from foreigners, the unit mix, size and quantum will have to cater more towards the local market. Nevertheless it is still a very attractive site and the top bid could be more than $1,500 psf ppr.

The Springleaf precinct has been identified as a new housing area following the completion of the Thomson East Coast line. The housing developments at Upper Thomson Road (Parcel A and B) will boost the ridership of TEL. The downside is the lack of amenities in the area. The commercial space at Parcel A will alleviate this concern, boosting the appeal of staying in this private residential enclave near vast stretches of greenery. These two sites are probably the best in the Springleaf precinct as there is direct access to the MRT station. Offering buyers a first mover advantage in a new housing precinct, the top bid could be more than $1,000 psf ppr.

The Zion Road (Parcel A) site has its plot ratio increased to 5.6 recently thus allowing more homes to be built. This site is directly connected to the Havelock MRT station and has commercial space on the first level. Mixed use sites with a direct MRT connection is highly sought after by buyers as it offers superior convenience. Homes on the higher floors will have towering views towards the south. It could see a top bid of more than $1,300 psf ppr.

The Clementi Avenue 1 and Pine Grove (Parcel B) sites are close to each other. They are likely to be offered under the batch tender system. The level of interest is likely to be dependent on the sales of Pinetree Hill. The top bid could be more than $1,100 psf ppr.

The EC site at Tengah is next to another EC site where the tender will close in June. The release of this EC site is in response to the strong sales at recent EC launches like Copen Grand and Tenet. It is within a 5 min walk to the future Tengah Park MRT station on the Jurong Region Line and will bring residents to the second CBD at Jurong East in less than 10 mins. EC sites within proximity to MRT stations are rare and tend to do well. It is a short walk to Princess Elizabeth Primary School. Following the success of Copen Grand, developers may be keen to look at EC sites in Tengah to shore up their landbank. It could draw up to 8 developers and a top bid of more than $650 psf ppr.