Huttons’ comments on 1H 2024 GLS programme

6 December 2023

The Government has pushed out 10 sites for residential homes under its 1H 2024 GLS programme. This will add 5,450 dwelling units to supply. The 5.6% increase is the smallest since 1H 2021 and is probably a response to the upcoming launches in 2024.

However the Media Circle site is for long stay serviced apartments and does not address buying demand. But it can tap on the rental demand in one-north.

Excluding the long-stay serviced apartments from the confirmed-list sites, the increase in the number of private housing units (including EC units) between H2 2023 and H1 2024 is much less, at just 50 units or 1 per cent.

The Tengah Garden Avenue, River Valley Green (Parcel A), Holland Road and Margaret Drive sites are attractive in terms of location attributes.

The Tengah Garden Avenue mixed use site is integrated with Hong Kah mrt station and is right next to a waterbody. There will be a school opposite the site as well. Integrated mixed-use sites are attractive to buyers and more developers will likely participate in the tender.

The River Valley Green (Parcel A) site will probably attract more interest than Zion Road (Parcel A) site. It has a direct access to Great World mrt station. It is smaller than Zion Road (Parcel A) which will translate into a lower quantum. Furthermore there is no long stay serviced apartments which will reduce the upfront capital expenditure and translate into lower risks to developers.

The Holland Road site is attractive as it is near to a mixed-use development, One Holland Village Residences and One Holland Village. However the large site with more than 600,000 sq ft gross floor area will potentially translate into a bid price of more than $1 billion. This huge quantum may put off bidders unless they are consortiums.

The Margaret Drive site is near to Queenstown mrt station. The project will have unblocked views of Singapore Botanic Gardens and the GCBA.

The Jalan Loyang Besar (EC) site should attract good interest from developers. It is near to Pasir Ris mrt interchange and Pasir Ris Mall and White Sands. The project will have a good unblocked view of the sea.