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The Government increased its supply of land for residential development in its 2H 2021 GLS programme by almost 25% to 2,000 dwelling units. This marks one of the steepest increase in supply of dwelling units since 2H 2016 where supply was hiked by 39.1%.
It is a good response to the hunger for land displayed by developers in recent GLS tenders. Two sites at Jalan Tembusu and Dairy Farm Road were moved from the Reserve List to the Confirmed List. In May, Huttons predicted that the site at Jalan Tembusu had a high probability of getting triggered for sale with a estimated top bid of between $1,400 and $1,500 psf ppr.
The Government has introduced two more sites at Lentor – one on the Confirmed List and one on the Reserve List. This is on top of an existing ongoing tender at Lentor Central which will close in July. We believe it is a calculated move to ensure that tender bids for Lentor Central are measured because there will be another site put up for sale in another two months.
The EC site at Bukit Batok Avenue 8 is a new addition to the GLS programme. This site is near to an earlier tender at Tengah Garden Walk which was just awarded for $603 psf ppr. This site may fetch lower taking into consideration that it is not within walking distance to a MRT station.
The site at Marina View will further inject more homes into the CBD supporting the Government’s vision of making the CBD vibrant after working hours. With a hotel component as part of the development, it shows the confidence of the party who triggered the site that global travel will resume soon and it is key to secure a first mover advantage by acting now.
