The Urban Redevelopment Authority (URA) has announced the release of two residential Government Land Sale (GLS) sites as part of the 2H2024 GLS Programme. The sites, Holland Plain and River Valley Green (Parcel C), have been listed under the Reserved List and are now available for application. This means that these sites will be triggered for sale if a developer indicates a minimum price that is accepted by the government. In the event that more than one developer submits a minimum price that is close to the government’s reserve price, the site may also be considered for tender launch.
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The Holland Plain GLS site covers an area of approximately 169,175 sq ft and has a maximum gross floor area (GFA) of about 304,522 sq ft. It has the potential to yield 280 residential units and has a leasehold of 99 years. The site is situated next to the Holland Link GLS site, which was launched for tender on Dec 3. It is estimated that the site can accommodate around 230 units.
Mark Yip, CEO of Huttons Asia, believes that there is a slim chance that the Holland Plain site will be triggered for sale, as developers are likely to wait and see the response for the Holland Link GLS site first. The tender for this plot will close in July 2025.
The River Valley Green (Parcel C) site is located next to the upcoming Great World MRT Station on the Thomson-East Coast Line. Spanning a land area of 123,964 sq ft, the 99-year leasehold site has a maximum GFA of 433,882 sq ft and can potentially yield 470 new housing units. Yip predicts that this site is also unlikely to be triggered for sale, given that there is an ongoing tender for the neighbouring River Valley Green (Parcel B) plot, which is set to close in February next year. The latter can accommodate 580 units, including 220 long-stay serviced apartments.
In addition, the site is also in close proximity to three other GLS sites that have been awarded recently. Winchamp Investment, a subsidiary of Wing Tai Holdings, was awarded River Valley Green (Parcel A) in June after submitting the highest bid of $464 million, or $1,325 psf per plot ratio (psf ppr). This site will be developed into a residential project with over 400 units.
In April, a joint venture between City Developments and Mitsui Fudosan secured Zion Road (Parcel A) with a bid of $1.107 billion ($1,202 psf ppr) as the sole bidder. The developers have plans to explore a mixed-use development with around 740 residential units, a retail podium, and a block with 290 rental apartment units.
Similarly, Allgreen Properties clinched Zion Road (Parcel B) in August with a bid of $730.09 million ($1,304 psf ppr). This site can potentially yield about 610 residential units.
Given the upcoming supply from these three sites, Yip believes that there is “little incentive” for developers to trigger River Valley Green (Parcel C) for sale.