Reserve list released for 2 GLS sites in Western Singapore

The reserve list for the GLS second half 2023 has released two Government Land Sales sites, in Holland Drive and De Souza Avenue Upper Bukit Timah.

Analysts believe that developers are unlikely to bite anytime soon.

The government accepts a minimum bid price from developers who apply for sites on the reserve list.

Analysts believe that the sites, which could yield 1,035 homes in total and are included on four new sites listed for the second half 2023, will not likely be put up for sale anytime soon.

The Holland Drive site will command a high price for its land, perhaps exceeding $1 billion, due to its location, proximity to the Holland Village MRT Station and the commercial amenities of Holland Village. It can produce approximately 680 units.

It will therefore not be put up for sale just yet. Experts believe that the potential bid price of $1 billion for the Holland Drive property, which is more than 600,000. sq ft in gross floor area, could deter most bidders, except consortiums.

The unit mix, size, and quantity will need to be tailored to the local market, as cooling measures are crimping the demand from foreigners.

Some analysts do not believe that the De Souza Avenue development, which could offer 355 new houses, will be activated soon, because it’s not located near an MRT.

The Continuum Singapore

Analysts have pointed out that new launches are located in better locations nearby. For example, the Bukit timah Link GLS is near Beauty World station and Hillhaven at Hillview Rise is near Hillview station.

The Jalan Jurong site, where the Verdale 258-unit development is located, was the last GLS residential parcel to be awarded within the area. This plot was awarded for $215m in September 2018, which is equivalent to $1,002 per square foot per person.

There is a small chance that the De Souza property will be put up for sale due to the limited supply of new land in the area, and the fact that the price may not exceed $500 million.

The site could attract a bid between $1,200 psf and $1,300 per square foot per year, which is between $397.74 and $430.88 millions.

The other two sites on the second half of the 2023 reserve list are an executive condominium parcel at Tampines Street 95, which has 560 units, and Zion Road, a 0.92ha plot with 605 units.

The majority of people believe that the likelihood of these four sites being put out to tender within the next six-months is low, due to the abundance of sites available on the confirmed list and the lack of attractive sites in suburban areas on the reserve list.

Recent GLS tenders show that developers still have a strong desire to purchase land as shown by the relatively high bids they received.