by OrangeTee & Tie Pte Ltd.

OrangeTee's comments on Government Land Sales Programme for 2H 2024

Government Land Sales

Singapore, 25 Jun 2024

Press Release

25 June 2024

OrangeTee's comments on Government Land Sales Programme for 2H 2024


Singapore, 25 June 2024 – The government has just released the Government Land Sales Programme for H2 2024.


About 5,000 residential units will be released on the confirmed list. Including units from one activated Reserve List site, a total of 11,100 residential homes will be offered in 2024, which will be the highest supply since 2013.

It is good that the government continues to increase land supply, especially in the suburbs, to improve accessibility to private housing for the general public. Moreover, developers may continue to take a measured approach in their land bidding with the increased availability of land, which will help contribute to the sustained stabilization of private property prices into 2025. 

Notably, a number of new sites are being released in the suburban areas, which will offer a more diverse range of housing options for prospective upgraders. Many of these new plots are in the Outside of Central Region (OCR), which is relatively more affordable for general homebuyers. Many of these plots are mid- to large-sized and comprise around 300 to 600 units each. Therefore, the release of more affordable units from larger land plots could cause an uptick of sales transactions next year. 

The more popular sites could be Bayshore Road, Chuan Grove, and Tampines EC. 

Site analysis:

1. Tampines EC - The demand for Executive Condominiums (ECs) continues to outstrip supply, leading to a steady rise in the prices of new ECs. There is a large pool of potential HDB upgraders living in the East. It is timely that more land is being released for building ECs to meet the ongoing demand in the market. The launch of this new EC can address the pent-up demand for HDB upgraders in Tampines, especially since the last EC, Tenet, was launched in 2022, and the next EC launch by Sim Lian will likely be released in 2025. This site may be released for sale in 2026. 

2. Faber Walk - Interest in this site could be mixed. While the site is not near an MRT station, some units enjoy river views and some panoramic views fronting the low-rise landed properties. 

3. Lentor Gardens -  Competition for buyers in Lentor has intensified with the release of more sites. In the latest land sale at Lentor Central in September 2023, only two bidders were present, indicating a slowdown of interest and a sense of fatigue setting in for land sites in this area. As a result, this site may not be as popular as the other sites.

4. River Valley Parcel B - The units directly front the Singapore Riverfront and a park, and it is in close proximity to the Great World MRT station. It is also situated just outside the CBD and near Orchard Road. Demand for previously launched projects such as Canninghill Piers and The Riviere has been strong. Therefore this site will be highly attractive to both investors and owner occupiers. 

5. Bayshore Road This will be the first private condominium site released in Bayshore in nearly three decades (the last GLS site within the Bayshore area was awarded in 1997, and is now the project Costa Del Sol). The government plans to release many new BTO (Built-To-Order) flats in the area. Therefore, it is good that they are now including some private homes in the same area to create a better balance. Private homes here will be highly sought after due to their proximity to the upcoming Bayshore MRT station. The high-floor units may also offer a panoramic sea view along the East Coast Park. Once completed, these private residences might attract numerous potential buyers from the nearby new BTO flats, which will reach their Minimum Occupation Period (MOP) in the next few years.

6/7. Media Circle Parcels A & B - Demand for private homes has been healthy in the One North district. One reason for this could be the area's proximity to schools such as NUS, Singapore Polytechnic, and NUS High School, as well as its location near the one-north business precinct and the Science Park business area. These factors make One North an attractive location for potential tenants or buyers who work or study in the area. It is good that the new site will offer commercial space on the ground floor. This space can be utilized by retail and F&B outlets, which will provide more amenities and dining options to the residents living in the area. This will be convenient for residents who do not have their own means of transportation as the sites are not located within walking distance from the Buona Vista MRT or Star Vista shopping mall.

8. Chuan Grove - This site is expected to be popular among local investors and families. It is in close proximity to several schools such as St. Gabriel's Primary School, Raffles Girls School, Raffles Institution, Maris Stella High School, Nanyang JC, Zhonghua Secondary School and Yang Zheng Primary School. Additionally, it is close to international schools like the Australian International School and Stamford American International School, which could be beneficial for rental prospects. Furthermore, it is conveniently located near the Lorong Chuan MRT station. A new condominium, The Chuan Park, is expected to be launched this year, which will provide some market indication of the sales performance in this area.

9. Holland Link - This site may not be as popular as the other sites as it is situated just next to a columbarium. However, residents may still enjoy its good location, being near the Holland area and the exclusivity of being within a landed enclave. 

10. Chencharu Close - This will be the first private land site to be released in Chencharu. The private land site will complement the new HDB flats that have been or will be released in this area. The increase in housing supply could stabilize the prices of private homes in suburban areas in general, slowing down price growth in the Outside of Central Region (OCR), and providing more affordable private housing options for HDB upgraders. The average price of new condos has exceeded S$2,000 per square foot (psf). Overall prices may be lower when more units are launched in other suburban regions like Yishun, especially since the resale price of condos in Yishun is still at a low of below S$1,300 psf. The government will be building new amenities to support residents in the Chencharu area, which will help improve the resale value of future condos in the area. The recent BTO application in Chencharu is quite high, indicating that many people are receptive to staying in this new area - https://services2.hdb.gov.sg/webapp/BP13BTOENQWeb/AR_Jun2024_BTO?strSystem=BTO 

To read full article: click here

For more news, research and information, 
OrangeTee Group
OrangeTee Advisory Pte Ltd (Company Reg. No.: 201714596E | Licence No.: L3010781J)
OrangeTee & Tie Pte Ltd (Company Reg. No.: 199206764K | Licence No.: L3009250K)
OrangeTee International Pte Ltd (Company Reg. No.: 201024069Z | Licence No.: L3010742Z)

© 2024 - All Rights Reserved to OrangeTee & Tie Pte Ltd