Tag Archives: MND

Govt may further trim confirmed list supply: experts

Majority of property consultants polled by the media expect the government to further reduce land supply for private housing development in the confirmed list in the upcoming H2 2014 Government Land Sales (GLS) Programme, given the sharp decline in home sales as well as the substantial supply pipeline.

Most of them believe that the reserve list will continue to account for the bulk of private housing land supply in H2 2014.

In the first half of the year, the Ministry of National Development (MND) is releasing land for almost 7,000 homes, including 605 executive condominium (EC) units, via the reserve list.

With this, property consultants expect the same level of overall supply for the reserve list in the second half, although most expect the supply of ECs to be higher, at about 1,000 units.

In the confirmed list, the MND is releasing for 4,630 homes, including 2,165 ECs, in the first half. The quantum forecast is lower for H2 at around 2,000 to 4,400 (including ECs).

DTZ’s Research Head Lee Lay Keng expects the number to range from 3,500 to 4,000 units, including 1,900 to 2,200 EC units.

Desmond Sim, CBRE Research Singapore Head predicts that the authorities would not offer any ECs on the confirmed list and around 1,000 on the reserve list, while JLL National Director Ong Teck Hui expect the supply to decline by 10 percent from H1 to around 8,000 private homes, 6,000 on the reserve list and 2,000 on the confirmed list.

On the contrary, Tan Tiong Cheng, Executive Chairman at Knight Frank, said the government may opt not to change the current supply numbers in both the confirmed and reserve list.

“If the authorities are looking to begin rolling back some of the property cooling measures at some point in the second half of this year, they don’t need to be over-generous by scaling back the GLS Programme as well,” he said.

“Otherwise, if there is a sudden surge in demand from fence-sitters if, say, the ABSD (additional buyer’s stamp duty) is reduced or removed, developers and agents may tell potential buyers: There’s no new supply coming, so you’d better buy from me.”

Second half 2012 Government Land Sales (GLS) Programme

1. The Ministry of National Development (MND) announced today that the second half 2012 (2H2012) GLS Programme will comprise 15 Confirmed List sites and 24 Reserve List sites. These sites can yield about 14,200 private residential units, including 3,100 Executive Condominium (EC) units, 388,000 sqm gross floor area (GFA) of commercial space and 3,700 hotel rooms.

2. The Confirmed List will comprise 12 private residential sites (including 6 EC sites), a commercial & residential site and 2 commercial sites. These sites can yield about 7,100 private residential units (including 3,100 EC units) and 80,000 sqm GFA of commercial space.

3. Of the 24 sites in the Reserve List, 14 are private residential sites, 2 are commercial sites, 2 are white sites and 6 are hotel sites. These sites can yield about 7,100 private residential units, 308,000 sqm GFA of commercial space and 3,700 hotel rooms.

Supply of Private Housing

4. There is a large supply of about 86,000(1) private housing units (including about 7,000 EC units) in the pipeline, of which about 38,000 units (including 1,800 EC units) are still unsold. However, demand for private housing remains strong. To continue to ensure there is adequate supply to meet demand, the Government has placed 13 sites(2) for private residential development on the Confirmed List, which can yield about 7,100 residential units. This is comparable to the supply made available in the Confirmed List in first half 2012 (1H2012).

5. Most of the private residential sites in the 2H2012 GLS Programme, including the 6 EC sites, are located in Outside Central Region or in locations in Rest of Central Region where more affordable private housing is expected to be built.

Supply of Commercial Space
6. A commercial site at Venture Avenue will be added to the 2H2012 Confirmed List to continue the momentum to develop Jurong Gateway into a vibrant commercial hub. The site, which will be sold with a minimum office GFA quantum, will also provide opportunity for the development of more affordable office space that can cater to users who do not need a CBD location.

7. In addition, the 2H2012 Reserve List will have 3 sites for office developments. The commercial site at Sims Avenue/Tanjong Katong Road and the white site at Marina View, which are already available in the 1H2012 Reserve List, will be carried over to the 2H2012 Reserve List. For the Sims Avenue/Tanjong Katong Road site, URA has revised the sale conditions for the site after taking into consideration market feedback(3).

8. A new commercial site at Cecil Street will also be added to the 2H2012 Reserve List. Together, these 3 sites will provide opportunities for the market to initiate more office space, over and above the 762,000 sqm GFA(4) of office space in the pipeline, if there is demand.

9. The commercial site at Punggol Point will be transferred from the 1H2012 Reserve List to the 2H2012 Confirmed List. It is envisioned to be developed into a rustic seaside dining destination as part of URA’s broader plans to transform Punggol Point into an attractive waterfront promenade for sports and recreation.

Supply of Hotel Rooms
10. A new hotel site at Victoria Street/Ophir Road will be added to the 2H2012 Reserve List. Together with the hotel sites carried over from the 1H2012 GLS Programme, they will provide ample opportunities for developers to initiate additional supply of hotel rooms over and above the pipeline supply of about 12,000 hotel rooms(5).

Other Government Supply to be Made Available in 2H2012
11. Apart from the GLS Programme, the Government also makes available other supply of land and properties through its various agencies to meet economic or development objectives.

12. The various Government agencies plan to initiate about 86,000 sqm GFA of commercial space outside the GLS Programme in 2H2012. This includes:

a: Leasing of vacant state properties for commercial uses (about 22,000 sqm GFA); and
b: Localised retail facilities at parks, MRT stations and community centres.

13. In addition, more retail space will come from a mixed use development by Changi Airport Group (CAG) at Changi Airport. More details on this project will be released by CAG in due course.
Issued by Ministry of National Development

1 The 86,000 units are from new development and redevelopment projects that have been granted planning approvals, i.e. either a Provisional Permission (PP) or Written Permission (WP), as at 1st Quarter 2012.

2 This includes a commercial & residential site at Yishun Ring Road/Yishun Ave 9.

3 Key changes include removal of the minimum hotel use requirement and allowing some residential use to give greater flexibility for the developer to propose the mix of uses for the site. For instance, under the new conditions the developer may choose to opt for an integrated office-retail-residential development, an office-retail-hotel development or an office-retail development. Single ownership for both the office and retail space will also be required to ensure better integration and management of this mixed use development.

4 The 762,000 sqm GFA of office space are from new development and redevelopment projects that have been granted planning approvals, i.e. either PP or WP, as at 1st Quarter 2012. More supply will also come from projects that are pending approvals such as the Choon Guan Street site and the 6 plots of land at Marina Bay and Ophir Road / Rochor Road development by M+S Pte Ltd.

5 The 12,000 hotel rooms are from new development and redevelopment projects that have been granted planning approvals, i.e. either PP or WP, as at 1st Quarter 2012.

Source : URA, – 2012 Jun 13