Government Land Sales (GLS)
- Shirley and Pamela
- Jul 1, 2022
- 2 min read
Recent tenders under the Government Land Sales (GLS) saw a restrained demand for housing sites, with the leasehold site in Pine Grove drawing five bids, and that in Dunman Road, just two.
The top bids for the Pine Grove and Dunman Road sites won the tenders at $671.5 million and $1.28 billion respectively. In spite of the tight contest for the Pine Grove (Parcel A) plot, the site nonetheless received fewer bids than that of the average number for tenders that closed earlier this year.
Aside from the incline in construction costs and the uncertainty surrounding the economy, the increase in the additional buyer’s stamp duty (ABSD) from 25% to 35%, following the implementation of last December’s cooling measures, also poses a key consideration for developers as they look to replenish their land banks.
That said, the top bid for the Dunman Road site— the largest land parcel sold under the GLS since May 2018— at $1350 psf ppr, is higher than the previous record of $1302 psf ppr, for the plot in Jalan Tembusu.
What can be expected from the GLS programme in the second half of the year
Bolstering the buoyancy of the private residential market is the boost in private housing supply released through the GLS, in the second half of the year. The five private residential sites on the Confirmed List include an executive condominium (EC) site, as well as a commercial and residential site. The GLS programme would thus yield about 3505 private homes in total— an increase from 2785 units in the first half of 2022.
New sites added to the Confirmed List include Marina Gardens Lane, Tampines Avenue 11, and Tengah Plantation Loop (EC). The launch of the Marina Gardens Lane site— the first sale in the Marina South precinct— is expected to be met with a high demand.
Keen on learning how the government land sales would factor into your property journey? Contact us to find out more!
Comments