The uptick in residential supply from confirmed sites under the Government Land Sales (GLS) programme for the first half of next year follows sharp cuts in the second half of 2020 owing to the Covid pandemic.
The private home supply of 1,605 units from the four confirmed list sites (as seen in the table above) rose by 235 units or about 17 per cent from a five-year low of 1,370 units in the second half of the 2020 GLS programme.
The confirmed list includes one executive condominium (EC) site that can yield about 590 units. The other three sites also offer 9,200 sq m gross floor area (GFA) of commercial space.
Four GLS land parcels in the confirmed list for sale in the 1st half of 2021 includes:
- Tampines Street 62 (Executive Condo land site)
- Lentor Central (Mixed development land site)
- Slim Barracks Rise (Parcel A)
- Slim Barracks Rise (Parcel B)
The two sites at Slim Barracks Rise, in the one-north area, located very near the current upcoming condo launch One North Eden, will see good housing demand due to the growing working population in the one-north biomedical and technology hub and located near the Buona Vista MRT station. Both the biomedical and technology sectors are two fast growing sectors which have both benefited from the pandemic.
Kiwi Lim from Huttons Asia believe that with the current low supply of new condo units in the market from the strong domestic demand seen both in the new sale and resale market, these GLS sites are likely to attract a competitive level of bidding activity as developers rush to stock depleted land banks.