Fifteen new sites have been put up for sale

Fifteen new sites have been put up for sale under the Government’s programme to offer land for development, in response to a robust economy and the red-hot property market.

The sites included land for apartments in suburbs such as Sembawang and Bishan, as well as office space and hotels to meet growing demand.

With yesterday’s release, there are now 41 mainly residential sites on sale in the second half of this year - the largest number since 1997.

One of the new sites was for executive condos (EC). ECs were introduced in 1996, and the last one was sold in June 2004.

Analysts say the large offering of fresh plots is a sign of the authorities’ bullishness in the economy and the Government’s efforts to grow the population.

Sites put on the confirmed list - meaning they will be tendered out, regardless of whether developers have indicated interest - doubled to 14, of which eight are for homes.

‘It reflects the confidence in the market and the need for space to cater to our growing population and economy,’ said Savills Singapore director of marketing and business development Ku Swee Yong.

‘It’s a pretty balanced programme and a reflection that the Government is listening to the ground and addressing market concerns.’

The supply crunch in the booming office and residential sectors has given rise to concerns about higher living and business costs affecting Singapore’s competitiveness.

‘While releasing more land for commercial and residential development will not increase the supply of office and homes overnight, the perception that ample new supply is on the way will hopefully help to ease pressure on rents and prices,’ said Ms Tay Huey Ying, director for research and consultancy at Colliers International.

The 20 residential sites, including eight new ones, could yield 8,000 homes.

The large number of residential sites is a response to the expected increase in mass market demand, said Knight Frank director of research and consultancy Nicholas Mak.

The Housing Board said the EC site would cater to those who aspire to buy private housing but may find it beyond their means.

Jones Lang LaSalle’s head of research, Dr Chua Yang Liang, said the residential land release ‘will pre-empt any run-up in mass market prices’.

The residential sites also include coveted suburban spots in Alexandra Road, Toa Payoh, Tanah Merah and Bishan, and should ensure there is affordable housing to cater to demand in the $500 to $550 per sq ft range, said Mr Ku.

Dr Chua lauded the Government’s ‘far-sighted’ view in releasing just two commercial sites, so as not to flood the market in future, as it will take time to develop them.

Still, relief may be in sight for suffering office tenants, said the executive director of CBRE Research, Mr Li Hiaw Ho. In the medium term, about 1.5 million sq ft of offices could hit the market, plus transitional offices of about 1.3 million sq ft due as early as late 2008, he said.

Keen interest is expected in a Marina View ‘white site’’, which allows offices, hotel rooms and other uses.

There are now 10 hotel sites on the list, which will yield the highest ever number of 6,500 rooms to cater to anticipated growth in tourist arrivals. One of the new sites is near Little India and another in Tanjong Pagar Road.

Overall, the list offers a wider variety of sites, consultants said. For instance, the landed Sembawang Park site will be subdivided into smaller plots for sale, enabling investors to buy and build their own house.

The Government also sells land on a reserve list where sites are tendered out only after developers show interest.

Where they are

THE 15 new sites are:

Residential sites

Sembawang Park

Boon Lay Way/Yuan Ching Road

Alexandra Road/Tiong Bahru Road

Toa Payoh Lorong 2/3

Yishun Avenue 1/2

New Upper Changi Road/Tanah Merah Kechil Ave

Bishan Street 14

Punggol Field/Punggol Road (executive condo)

Hotel sites

Jalan Bukit Merah/Alexandra Road

Jalan Besar/Sturdee Road

Race Course Road/Bukit Timah Road

Bernam Street/Tanjong Pagar Road

Commercial sites

Jalan Sultan

Tampines Concourse

White site

Marina View

Source: The Straits Times, 15 June 2007