New sites will ensure sufficient housing

Nov 17, 2009 - PropertyGuru.com.sg

The Singapore government assured last week that there is sufficient residential supply in the country, so home buyers need not rush. Following this announcement was the government’s decision to sell eight residential sites in the first half of 2010.

The eight sites are located in non-city areas such as Tampines, Simei and Choa Chu Kang.

The government has several reserve lists for residential sites available for sale, but only if property developers commit to a minimum bid acceptable by the government.

The supply comes from the government’s twice-yearly land sales programme, giving home buyers more choices.

HDB upgraders for instance, will be happy to learn that the latest sales programme in the first-half of 2010 will see a slow progress on suburban residential sites.

Home owners living in the vicinity of the eight sites can look forward to new projects in the next few years and if the economy continues to improve, they can also expect an increase in the value of their homes when new projects are launched for sale.

“Generally, when a new project is launched, it will have a bearing on the developments in the vicinity,” said Ms Tay Huey Ying, research and advisory director for Colliers International.

“If a project is launched at bullish price levels, it could push up the prices of surrounding developments, though a lot can depend on project attributes,” she added.

Nicholas Mak, a Ngee Ann Polytechnic lecturer explained, “In a buoyant market, developers would launch at a higher price on a per sq ft basis than surrounding projects. In a less buoyant market, the premium would be smaller.”

He added, “The launch price does give some support to the asking prices of individual sellers in the area.”

The largest site is located in Tampines, which can hold a total of 605 units.

The 200-unit residential site in Choa Chu Kang Road is situated above the Ten Mile Junction and Bukit Panjang LRT Depot, near the upcoming Bukit Panjang MRT station.

The residential site near the Sembawang Shopping Centre can also hold 290 units.

“As Singapore becomes more populated, characterised by a relatively fast-paced lifestyle, accessibility and proximity to mass transit stations will be a key consideration for future home buyers,” said Leonard Tay, director of CBRE Research.

On the reserve list, the Bartley Road site, near the Bartley MRT station, will have 500 residential units while the Stirling Road site, near the Queenstown MRT station, will have 405 units.

In addition, the Singapore government is ensuring the availability of 10,550 private residential units—the largest residential supply since 2001.

However, the effect of these sites will not be felt immediately as it would take 1 ½ years before the eight projects can be launched, Mr. Mak said.