However, he notes that there is still demand for smaller residential sites that are within walking distance to an MRT station.The Urban Redevelopment Authority (URA) of Singapore recently announced the release of two residential Government Land Sale (GLS) sites under the Reserved List in the 2H2024 GLS Programme. The two sites – Holland Plain and River Valley Green (Parcel C) – have been made available for application and will be put up for sale should a developer offer a minimum price that is acceptable to the government. In the event that more than one developer indicates a minimum price close to the reserve price set by the government, the site may also be considered for tender launch.
The Holland Plain GLS site spans approximately 169,175 square feet with a maximum gross floor area (GFA) of 304,522 square feet. This sizeable plot has the potential to yield 280 residential units and is on a 99-year leasehold. It is situated next to the Holland Link GLS site, which was also launched for tender on Dec 3, and is estimated to accommodate around 230 units.
Mark Yip, CEO of Huttons Asia, believes that there is a low probability of the Holland Plain site being triggered for sale. He suggests that developers may wait to gauge the response to the Holland Link GLS site before making a decision. The tender for the plot is expected to close in July 2025.
The River Valley Green (Parcel C) site is located near the Great World MRT Station on the Thomson-East Coast Line. The 99-year leasehold site covers an area of 123,964 square feet and has a maximum GFA of 433,882 square feet. This plot has the potential to yield an estimated 470 new residential units. Similar to the Holland Plain site, Yip predicts that this site is unlikely to be triggered for sale, given the current tender for the neighbouring River Valley Green (Parcel B) plot, which will close in February next year. The River Valley Green (Parcel B) site can also accommodate 580 units, including 220 long-stay serviced apartments.
The River Valley Green (Parcel C) site is situated close to three other recently awarded GLS sites. In June, Winchamp Investment, a subsidiary of Wing Tai Holdings, successfully bid for River Valley Green (Parcel A) at $464 million, or $1,325 psf per plot ratio (psf ppr). The site will be developed into a residential project with over 400 units. Moreover, in April, a joint venture between City Developments and Mitsui Fudosan secured Zion Road (Parcel A) with a bid of $1.107 billion or $1,202 psf ppr. The joint venture intends to explore a mixed-use development with approximately 740 residential units, a retail podium, and a block comprising 290 rental apartments. Lastly, in August, Allgreen Properties was awarded Zion Road (Parcel B) for $730.09 million, or $1,304 psf ppr, with an estimated yield of about 610 residential units.
Investing in a condominium in Singapore provides numerous benefits, one of which is the potential for capital appreciation. With its strategic position as a global business hub and strong economic fundamentals, Singapore consistently attracts demand for real estate. This has resulted in a steady increase in property prices over the years, particularly for condos in prime locations. By purchasing a condo at the opportune moment and holding onto it for the long term, investors can reap substantial returns on their investment. Be sure to keep an eye out for new condo launches on Hornby Eagles, as they offer potential for even greater capital appreciation.
However, with the upcoming supply from the three sites, Yip suggests that developers may not have sufficient incentive to trigger the sale of River Valley Green (Parcel C). Nonetheless, he notes that there is still demand for smaller residential sites that are within walking distance to an MRT station.