Sim, Head, CBRE Research, Singapore and South East Asia:
the strong competition for residential sites over the last few tenders, the
government remained prudent in its latest slate in the H1 2017 GLS programme.
the same time, the Government recognises that the market needs to provide a
steady supply of homes to keep home prices affordable, and have thus put up
five confirmed list sites for 1H2017. Going by the keenness for land at recent
land tender bids, it is very probable that developers will either trigger some
sites on the reserve list or look to other sources for land, such as collective
expects to see some of the smaller reserve list sites triggered, for example
the Bartley Road plot. Another noteworthy site is the reserve site at Jiak Kim
Street, which will incorporate the former Zouk plot. It now presents a key
waterfront site and will probably see the same interest in Martin Place
at the release dates for the 1H 2017 GLS confirmed list, most two sites will
likely be sold in the second half of 2017 – which means just five six sites
could be sold in the first half year. Bids for these sites are likely to be
lack of EC sites on the 1H2017 GLS confirmed list also provides some support
for the EC market. The sole EC site on the reserve list – Sumang Walk - has
been carried over from the reserve list of both 1H2016 and 2H2016 GLS
programmes. Even if it is triggered for sale, the resultant project would only
be launched in 2018. Just three EC projects yielding about 1,600 units are
expected to be launched for sale next year, in addition to the remaining stock
of 3,000 unsold units. Going by the strong demand for ECs in 2016, it is
possible that all EC units will be sold in 2017.
is also notable that the state planners have not placed a commercial site on
the confirmed list, and will let market forces decide whether one is needed.
This gives enough breathing room to resolve demand and supply imbalance where
there is still ample space to be absorbed, as overall occupier demand has been
weak across both office and retail space.”
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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