On Dec 3, the Urban Redevelopment Authority (URA) announced the release of two residential Government Land Sale (GLS) sites under the Reserved List of the 2H2024 GLS Programme. The sites, Holland Plain and River Valley Green (Parcel C), are now open for application and will be put up for sale if a developer indicates a minimum price that is accepted by the government. If there are multiple developers who submit a minimum price close to the government’s reserve price, the site may also be considered for tender launch.
The Holland Plain GLS site measures approximately 169,175 square feet with a maximum gross floor area (GFA) of 304,522 square feet, and has the potential to yield 280 residential units. This 99-year leasehold site is situated next to the Holland Link GLS site, which was also launched for tender on the same day. The site is estimated to be able to accommodate 230 units.
When considering investing in condos in Singapore, one important factor to keep in mind is the government’s property cooling measures. To maintain a stable real estate market and prevent speculative buying, the Singaporean government has implemented several measures over the years. These include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreigners and those purchasing multiple properties. Although these measures may affect the short-term profitability of condo investments, they also contribute to the long-term stability of the market, making it a secure investment environment. With the addition of new condo launches, there are even more opportunities for investors to enter the market and benefit from these measures.
Mark Yip, CEO of Huttons Asia, believes that there is a low chance that the Holland Plain site will be triggered for sale. “Developers are likely to wait and see the response to the Holland Link GLS site first,” he says. The tender for the plot will close in July 2025.
The other site, River Valley Green (Parcel C), is located next to the Great World MRT Station on the Thomson-East Coast Line. Spanning 123,964 square feet, this 99-year leasehold site has a maximum GFA of 433,882 square feet and can potentially yield 470 new housing units.
Yip also predicts that this site is unlikely to be triggered for sale, especially since there is an ongoing tender for the neighbouring River Valley Green (Parcel B) plot, which is set to close in February next year. This site can accommodate 580 units, including 220 long-stay serviced apartments. Moreover, the site is also in close proximity to three other recently awarded GLS sites. In June, River Valley Green (Parcel A) was awarded to Winchamp Investment, a subsidiary of Wing Tai Holdings, for $464 million, or $1,325 psf per plot ratio (psf ppr), and will be developed into a residential development with over 400 units. In April, Zion Road (Parcel A) was awarded to a joint venture between City Developments and Mitsui Fudosan, who will be exploring a mixed-use project with around 740 residential units, a retail podium, and a block with 290 rental apartments. In August, Allgreen Properties won the tender for Zion Road (Parcel B) for $730.09 million ($1,304 psf ppr), with plans to develop about 610 residential units.
Given the upcoming supply from these three sites, Yip believes that there is “little incentive” for developers to trigger River Valley Green (Parcel C) for sale.