Huttons’ comments on the Northumberland GLS site
The GLS site at Northumberland Road attracted ten bidders and a top bid of $1,129 psf ppr.
It is the second GLS tender for private residential development to close after the circuit breaker and the double-digit number of bidders showed the hunger for land among developers. The volume of uncompleted unsold stock at 21,602 units is getting dangerously low and is just 6,517 units away from the previous low of 15,805 units in 2Q 2017.
The top bid is 12.8% higher than the previous GLS tender at Perumal Road in January 2017. However we feel that the bid is measured. The URA non-landed property price index has increased 17.4% from 1Q 2017 till 1Q 2021, much more than the increase in land price. This shows that developers are mindful of the potential risk of new cooling measures affecting demand.