Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up

The government yesterday effectively delivered a sharp cut in state land sales that should give some relief to the current soft property market. Supply from the confirmed list of the Ministry of National Development’s (MND) H2 2008 land sales programme is less than half that in H1.

Although the supply on the H2 reserve list has been increased so that the total on both lists is about the same as in H1, market watchers reckoned that it is a fair bet that not many reserve list sites will be triggered for release.

Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.

‘With most sites in the Government Land Sales Programme on the reserve list, the government will allow the market to activate supply in accordance with actual demand,’ the Urban Redevelopment Authority (URA) said when queried about the latest programme.

Agreeing, CB Richard Ellis executive director Li Hiaw Ho said: ‘Given the uncertainty in the wider market and the global economy, the government appears to be responding to feedback by allowing developers to decide the pace of development through the reserve list.’

In all, MND is offering 40 sites in H2. Eight are on the confirmed list, down from 11 in H1, and 32 are on the reserve list, up from 26.

The latest confirmed list will yield about 1,120 private homes, 50,000 square metres of gross floor area (GFA) of commercial space and 700 hotel rooms. This is less than half the H1 confirmed list supply of 3,000 private homes, 176,581 sq m of commercial GFA and 1,670 hotel rooms.

The overall H2 programme will generate 7,960 private homes, 400,000 sq m of commercial GFA and 5,750 hotel rooms.

This is similar to the H1 quantum – 8,250 private homes, 436,581 sq m of commercial GFA and 5,850 hotel rooms.

‘The government is mindful of current market conditions,’ said DTZ executive director Ong Choon Fah. ‘They’ve announced a very measured programme, so as not to upset the market.’

However, one area of concern is MND’s decision to release another two 15-year leasehold transitional office sites through the confirmed list – at Mohamed Sultan and Mountbatten roads. Market watchers are concerned that the completion of developments on further transitional sites will come closer and closer to the completion of major office projects such as Marina Bay Financial Centre, 50 Collyer Quay and Ocean Financial Centre.

URA, however, said that it has received market feedback that there is demand for transitional office sites from businesses that need office space urgently but not a city centre location.

The two plots are among 13 new sites MND is offering on its H2 slate of 40 plots. A plum new site comprises the existing Capitol Theatre, Capitol Building, Stamford House (all gazetted for conservation) and Capitol Centre, which may be torn down and redeveloped. A minimum quantum for hotel use will be stipulated. Another choice new site on the confirmed list is a hotel plot on Bukit Chermin Road next to Keppel Club. The three hectare site includes four black-and-white bungalows on hilly terrain. ‘The sale of this site for hotel development is timed to coincide with the completion of the Labrador Nature and Coastal Walk nearby in 2011,’ MND said.

It is also offering subdivided landed housing plots under the third phase of Sembawang Greenvale.

New plots on the reserve list include a white site next to Jurong East MRT Station, which will have a minimum office component and could also generate about 385 homes, and two hotel sites – one a beachfront plot along Kallang River and the other on Short Street in the Selegie area. Several new condo sites are also on the reserve list – including one next to Lorong Chuan MRT Station and another next to the Dakota Residences project, which will be previewed tomorrow.

MND also highlighted additional sources of space that the government will make available in H2 2008 – including about 143,000 sq m GFA of commercial space from sources such as interim use of vacant state buildings and small land parcels for commercial use; retail space at the mixed-used development at Lavender Street by JTC Corp; about 240 hotel rooms; and 20 private homes.

Giving an update on the supply pipeline, MND said that about 1.11 million sq m of GFA of office space, 435,000 sq m of business park space, 565,000 sq m of shop space and 11,161 hotel rooms are scheduled for completion between Q2 2008 and 2011.

In the private residential sector, some 56,500 new private homes are expected to be ready between Q2 2008 and 2011, of which 23,300 are in the Core Central Region.

Source : Business Times – 20 Jun 2008

Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up

The government yesterday effectively delivered a sharp cut in state land sales that should give some relief to the current soft property market. Supply from the confirmed list of the Ministry of National Development’s (MND) H2 2008 land sales programme is less than half that in H1.

Although the supply on the H2 reserve list has been increased so that the total on both lists is about the same as in H1, market watchers reckoned that it is a fair bet that not many reserve list sites will be triggered for release.

Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.

‘With most sites in the Government Land Sales Programme on the reserve list, the government will allow the market to activate supply in accordance with actual demand,’ the Urban Redevelopment Authority (URA) said when queried about the latest programme.

Agreeing, CB Richard Ellis executive director Li Hiaw Ho said: ‘Given the uncertainty in the wider market and the global economy, the government appears to be responding to feedback by allowing developers to decide the pace of development through the reserve list.’

In all, MND is offering 40 sites in H2. Eight are on the confirmed list, down from 11 in H1, and 32 are on the reserve list, up from 26.

The latest confirmed list will yield about 1,120 private homes, 50,000 square metres of gross floor area (GFA) of commercial space and 700 hotel rooms. This is less than half the H1 confirmed list supply of 3,000 private homes, 176,581 sq m of commercial GFA and 1,670 hotel rooms.

The overall H2 programme will generate 7,960 private homes, 400,000 sq m of commercial GFA and 5,750 hotel rooms.

This is similar to the H1 quantum – 8,250 private homes, 436,581 sq m of commercial GFA and 5,850 hotel rooms.

‘The government is mindful of current market conditions,’ said DTZ executive director Ong Choon Fah. ‘They’ve announced a very measured programme, so as not to upset the market.’

However, one area of concern is MND’s decision to release another two 15-year leasehold transitional office sites through the confirmed list – at Mohamed Sultan and Mountbatten roads. Market watchers are concerned that the completion of developments on further transitional sites will come closer and closer to the completion of major office projects such as Marina Bay Financial Centre, 50 Collyer Quay and Ocean Financial Centre.

URA, however, said that it has received market feedback that there is demand for transitional office sites from businesses that need office space urgently but not a city centre location.

The two plots are among 13 new sites MND is offering on its H2 slate of 40 plots. A plum new site comprises the existing Capitol Theatre, Capitol Building, Stamford House (all gazetted for conservation) and Capitol Centre, which may be torn down and redeveloped. A minimum quantum for hotel use will be stipulated. Another choice new site on the confirmed list is a hotel plot on Bukit Chermin Road next to Keppel Club. The three hectare site includes four black-and-white bungalows on hilly terrain. ‘The sale of this site for hotel development is timed to coincide with the completion of the Labrador Nature and Coastal Walk nearby in 2011,’ MND said.

It is also offering subdivided landed housing plots under the third phase of Sembawang Greenvale.

New plots on the reserve list include a white site next to Jurong East MRT Station, which will have a minimum office component and could also generate about 385 homes, and two hotel sites – one a beachfront plot along Kallang River and the other on Short Street in the Selegie area. Several new condo sites are also on the reserve list – including one next to Lorong Chuan MRT Station and another next to the Dakota Residences project, which will be previewed tomorrow.

MND also highlighted additional sources of space that the government will make available in H2 2008 – including about 143,000 sq m GFA of commercial space from sources such as interim use of vacant state buildings and small land parcels for commercial use; retail space at the mixed-used development at Lavender Street by JTC Corp; about 240 hotel rooms; and 20 private homes.

Giving an update on the supply pipeline, MND said that about 1.11 million sq m of GFA of office space, 435,000 sq m of business park space, 565,000 sq m of shop space and 11,161 hotel rooms are scheduled for completion between Q2 2008 and 2011.

In the private residential sector, some 56,500 new private homes are expected to be ready between Q2 2008 and 2011, of which 23,300 are in the Core Central Region.

Source : Business Times – 20 Jun 2008

Latest slate sees sharp cut in supply from confirmed list, while that from the reserve list is up

The government yesterday effectively delivered a sharp cut in state land sales that should give some relief to the current soft property market. Supply from the confirmed list of the Ministry of National Development’s (MND) H2 2008 land sales programme is less than half that in H1.

Although the supply on the H2 reserve list has been increased so that the total on both lists is about the same as in H1, market watchers reckoned that it is a fair bet that not many reserve list sites will be triggered for release.

Not one reserve list site in H1 has so far drawn a successful application by a developer. In the face of weak home sales, developers held back from applying for reserve sites. Tight financing for property and a construction bottleneck could see them continue to hold back in H2.

‘With most sites in the Government Land Sales Programme on the reserve list, the government will allow the market to activate supply in accordance with actual demand,’ the Urban Redevelopment Authority (URA) said when queried about the latest programme.

Agreeing, CB Richard Ellis executive director Li Hiaw Ho said: ‘Given the uncertainty in the wider market and the global economy, the government appears to be responding to feedback by allowing developers to decide the pace of development through the reserve list.’

In all, MND is offering 40 sites in H2. Eight are on the confirmed list, down from 11 in H1, and 32 are on the reserve list, up from 26.

The latest confirmed list will yield about 1,120 private homes, 50,000 square metres of gross floor area (GFA) of commercial space and 700 hotel rooms. This is less than half the H1 confirmed list supply of 3,000 private homes, 176,581 sq m of commercial GFA and 1,670 hotel rooms.

The overall H2 programme will generate 7,960 private homes, 400,000 sq m of commercial GFA and 5,750 hotel rooms.

This is similar to the H1 quantum – 8,250 private homes, 436,581 sq m of commercial GFA and 5,850 hotel rooms.

‘The government is mindful of current market conditions,’ said DTZ executive director Ong Choon Fah. ‘They’ve announced a very measured programme, so as not to upset the market.’

However, one area of concern is MND’s decision to release another two 15-year leasehold transitional office sites through the confirmed list – at Mohamed Sultan and Mountbatten roads. Market watchers are concerned that the completion of developments on further transitional sites will come closer and closer to the completion of major office projects such as Marina Bay Financial Centre, 50 Collyer Quay and Ocean Financial Centre.

URA, however, said that it has received market feedback that there is demand for transitional office sites from businesses that need office space urgently but not a city centre location.

The two plots are among 13 new sites MND is offering on its H2 slate of 40 plots. A plum new site comprises the existing Capitol Theatre, Capitol Building, Stamford House (all gazetted for conservation) and Capitol Centre, which may be torn down and redeveloped. A minimum quantum for hotel use will be stipulated. Another choice new site on the confirmed list is a hotel plot on Bukit Chermin Road next to Keppel Club. The three hectare site includes four black-and-white bungalows on hilly terrain. ‘The sale of this site for hotel development is timed to coincide with the completion of the Labrador Nature and Coastal Walk nearby in 2011,’ MND said.

It is also offering subdivided landed housing plots under the third phase of Sembawang Greenvale.

New plots on the reserve list include a white site next to Jurong East MRT Station, which will have a minimum office component and could also generate about 385 homes, and two hotel sites – one a beachfront plot along Kallang River and the other on Short Street in the Selegie area. Several new condo sites are also on the reserve list – including one next to Lorong Chuan MRT Station and another next to the Dakota Residences project, which will be previewed tomorrow.

MND also highlighted additional sources of space that the government will make available in H2 2008 – including about 143,000 sq m GFA of commercial space from sources such as interim use of vacant state buildings and small land parcels for commercial use; retail space at the mixed-used development at Lavender Street by JTC Corp; about 240 hotel rooms; and 20 private homes.

Giving an update on the supply pipeline, MND said that about 1.11 million sq m of GFA of office space, 435,000 sq m of business park space, 565,000 sq m of shop space and 11,161 hotel rooms are scheduled for completion between Q2 2008 and 2011.

In the private residential sector, some 56,500 new private homes are expected to be ready between Q2 2008 and 2011, of which 23,300 are in the Core Central Region.

Source : Business Times – 20 Jun 2008

Only eight sites for outright sale; move follows poor sales in first half of year

THE Government is cutting back on the number of development sites being released for outright sale over the next six months.

The move follows poor sales of the 37 sites that have been available since the start of the year.

Only five sites on the confirmed list have been sold while four other plots have yet to be sold or launched.

None of the 26 sites on the reserve list has been put up for tender. These sites go on sale only if a developer makes a minimum bid.

The Government decided not to award one residential site as the bids were too low, and it withdrew an unsold hotel plot in Race Course Road after it failed to attract an offer.

CBRE Research executive director Li Hiaw Ho said: ‘Given the (economic) uncertainty, the Government appears to be responding to feedback by allowing developers to decide on the pace of development through the reserve list.’

Even with the reduced number of new sites for the second half, developers will still have a wide choice.

In addition to the 13 new sites, there will be 27 carried over from the first half of the year. Of this batch of 40 plots, eight are on the confirmed list, with the rest on reserve.

‘The existing supply is more than adequate to meet the market’s medium-term needs and to address the Government’s concern about supply,’ said a developer.

‘In such a volatile and uncertain market, force-feeding the market with a large, confirmed list may create opportunistic bids that are not indicative of true values.’

Chesterton International’s head of research and consultancy, Mr Colin Tan, said the Government is forcing developers to be more reasonable with their pricing by pushing out sites on the confirmed list.

‘While the overall numbers do suggest there is a good chance of a glut occurring, there are also pockets of pent-up residential demand, especially among owner-occupiers.’

If all the residential sites stay on the reserve list, developers can opt not to bid. But with no cheaper alternatives in the pipeline, homebuyers may have to stretch themselves and fork out the premiums demanded by developers, said Mr Tan.

There are 21 residential sites for sale, similar to the first six months, but just four are on the confirmed list. There were eight in the first half of the year.

There are some prime sites on the reserve list, including at Serangoon Avenue and Dakota Crescent, which are near new MRT stations.

Ms Tay Huey Ying of Colliers International said: ‘Despite the attractiveness of these sites, they may not be triggered for sale in view of the subdued sentiment.’

But Mr Nicholas Mak, Knight Frank’s director of research and consultancy, said the reserve list sites will help to ensure flexibility in the sales programme if the market picks up later this year.

Source : Straits Times – 20 Jun 2008