Property consultants overwhelmingly predict that Singapore’s government will make further cuts in the land supply on the confirmed list available for private residential development because of the current market conditions, i.e. the very sharp slowdown in housing sales transactions and the substantial amount of such land already in the pipeline.
The same property consultants also believe that commercial sites will henceforth be offered on the confirmed and/or reserved lists to increase the rate of development of commercial hubs, they cite examples such as sites in Paya Lebar and Woodlands.
Reduction in Government Land Sales Programme
The reserve list is where sites are launched for tender only upon a developer’s successful application. Most property consultants believe that the reserve list will continue to provide land for most private housing in Singapore in the forthcoming 2nd half 2014 Government Land Sales Programme. During the 1st half 2014 Singapore’s Ministry of National Development released land for close to 7,000 homes, including 605 executive Condominium units via the Reserve List.
A Business Times survey of property consultants revealed that the majority believe that the 2nd half 2014 list will provide around the same overall housing land supply however, most consultants believe that there will be more executive condominiums, around 1,000 units, which are a public-private partnership. Sites are launched on the confirmed list according to a timetable regardless of the demand. During the 1st half 2014, land for 4,630 homes, including 2,165 executive condominiums is being sold, 2nd half forecasts are for lower numbers, and thus less land, approximately 2,000-4,400 including executive condominiums.
More Executive Condominiums coming up
There are reports in the industry that the business development site adjacent to the Paya Lebar Circle Line MRT Station, which is currently on the reserve list, will be made larger. The site carries a minimum office use stipulation on the site, although other uses, residential, retail, and hotel are also allowed.There is also some speculation that the mixed use development in Holland Village, which featured in the Draft MasterPlan in 2013, may resurface in the Government Land Sales Programme in the 2nd half of 2014, providing all technical conditions are satisfied. The Holland Village site is expected to be a mixed retail and residential development.