Excluding EC, the 1H 2023 GLS programme has 6 parcels totalling 3,390 dwelling units. This is 12.6% higher than 2H 2022 GLS programme but a marked moderation from the increase of 31.4% seen in 2H 2022 GLS programme. This is the smallest increase in percentage terms since 1H 2017 where the Government increased dwelling units by 7.4%.
The Tampines St 62 Parcel B (EC) site is expected as the previous EC site had achieved very good results on launch day. Furthermore another mixed-use development at Tampines Ave 11 will be launched in Dec which will greatly increase the amenities in the area. The top bid may be between $630 and $680 psf ppr.
The site at Media Circle is a surprise. The parcel of land is zoned white under the Master Plan. While it makes for a natural extension from the Tanglin Halt precinct, the relatively untested area in the midst of Business Park sites may not see much interest. There is also a lack of amenities and transport infrastructure in the area.
The Marina Gardens Crescent site is probably introduced to check against any exuberant bid for the Marina Gardens Drive site. It should see good interest from not more than 5 developers and may potentially attract a top bid between $1,250 and $1,350 psf ppr.
Jurong East is shaping up well as a second CBD. The last residential site was J Gateway which was sold 10 years ago. This 6.8 ha parcel will be progressively developed over the next 5 to 10 years. It is likely to be launched for tender under a two-envelope system so that the master developer proposal is aligned with the broad intent for the area. Depending on the proposal, the estimated bid could be in the range of $3 to $4 billion. This is a very huge quantum and has considerable risks. The ABSD payable is highly likely to be staggered based on the pace of development to lower the risks to the master developer. The returns are also higher as the master developer gets to control the supply and pricing for the area.
Tags:
Back to Blog
