Residential Market News Extract - 14 June 2012

Land dose to quench thirst for cheaper homes

Satisfying the demand for more affordable private homes seems to be the government's focus in its land sales programme for the second half of 2012.

Most sites in the confirmed list of the Government Land Sales (GLS) programme announced yesterday are in the suburban Outside Central Region (OCR) and Rest of Central Region (RCR). This includes wholly private and executive condominium (EC) sites.

ECs continue to feature strongly, with six out of the 13 residential sites (one of which is a mixed use site) on the confirmed list being allocated for such developments, potentially yielding some 3,100 EC units, slightly more than the five sites or 2,900 EC units offered in the first half of 2012.

Some choice sites are up for grabs, including a private housing site along Commonwealth Avenue and a mixed-use residential site at Yishun Ring Road.

Meanwhile, a commercial site at Venture Avenue (Jurong Gateway) was also placed on the confirmed list. Industry watchers see this as a welcome move and expect the site - which will be sold with a minimum office GFA quantum - to draw interest as the government has committed to develop the district into a vibrant commercial hub.

Also within the commercial sector, the Sims Avenue/Tanjong Katong Road site on the reserve list saw some sale conditions being revised. The site's minimum hotel use requirement has been removed and some residential use allowed to give the developer greater flexibility.

For instance, the developer may choose to create an integrated office-retail-residential development, an office-retail-hotel development or an office-retail development after the change. However, single ownership for both the office and retail space will be required.

Yesterday, the MND announced that the confirmed list for H2 2012 will comprise a total of 12 private residential sites, a commercial and residential site as well as 2 commercial sites, which can be developed into 7,100 private residential homes and a gross floor area of about 861,112 sq ft of commercial space.

On the other hand, the reserve list will include a total of 24 sites, of which 14 are designated for private residential developments, 2 for white sites, 2 for commercial sites and the remaining six for hotel developments. These sites can also be developed into 7,100 private homes, 3.3 million sq ft (GFA) of commercial space and 3,700 hotel rooms.

Source: Business Times – 14 June 2012

 

Six more EC plots confirmed for year

First-time home buyers and aspiring upgraders will have a wider range of executive condominium (EC) units to choose from, going by the Government's latest land sales programme.

Six plots in heartland areas such as Pasir Ris, Punggol and Sembawang are on the confirmed list for the second half of the year.

These sites could yield a total of 3,100 units, augmenting the 2,900 from five EC plots placed on the confirmed list in this half of the year.

ECs have become increasingly popular, especially after the household income ceiling for eligibility was raised last year from $10,000 to $12,000.

There were 1,557 new EC units sold in the three months to March 31, up from 608 in the same period a year ago.

Take the new site in Pasir Ris. Any project built on it will have to compete with the recently launched Watercolours EC.

The Punggol Way EC site will add to others in the pipeline, such as the one at Punggol Central released in the first half of this year.

ERA Realty key executive officer Eugene Lim said the best of the six new plots is the one at the corner of Pasir Ris Drive 3 and Pasir Ris Rise, as it is near the sea and lifestyle amenities.

He added: 'I don't expect the bids to be aggressive, given the number of developments under construction in the area...

'It is possible that developers will price the units competitively, but it depends on market conditions.'

It is in the government’s agenda to provide an avenue to satisfy the upgrading aspirations of the sandwich class, the Government is pushing out sites for private residential development, including ECs.

Analysts highlighted that the Commonwealth Avenue plot was the choicest of the other plots slated for private projects as it is opposite the Queenstown MRT station and relatively close to town.

Another site slated for commercial and residential use - in Yishun Ring Road - is also attractive as it plugs a gap in the neighbourhood, which has a need for amenities.

The nearest mall, Northpoint Shopping Centre, is some distance away.

Source: The Straits Times – 14 June 2012