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The government on Thursday (17 December) announced the first half 2016 (1H2016) Government Land Sales (GLS) programme, which comprises four confirmed list sites and 12 reserve list sites.
The confirmed list includes three private residential sites (including one EC site) and one commercial & residential site, while the reserve list comprises 12 sites, of which three are zoned for commercial use. These sites are located at Beach Road, Woodlands Square and Central Boulevard for mixed-use developments which will comprise mainly office space. According to the Urban Redevelopment Authority (URA), the sites can yield up to 272,600 sq m of gross floor area (GFA) of commercial space.
“The supply of private housing and commercial space from the GLS Programme, together with supply from projects in the pipeline, will be adequate to meet the demand for private housing and commercial space over the next few years,” URA said.
On Wednesday (16 December), the government released details on the sales conditions for the white site at Central Boulevard.The 99-year leasehold parcel measures approximately 1.1ha and has a gross plot ratio of 13.0. The future development may be built up to a height of about 50 storeys. The site will yield a potential gross floor area of about 141,309 sq ft, of which at least 100,000 sq ft will be set aside for office use, said URA.
As the site is expected to yield more office units in the CBD, CBRE said the site provides continuity in terms of office supply to the market for the mid- to long-term. “Post-2016 [and] -2017, there remains very limited new supply in the CBD core. Should this new site be triggered and awarded, earliest by end-2016/ early 2017, the new development should only be completed early 2020 [to] 2021, said Desmond Sim, Head of CBRE Research Singapore and South East Asia.
“The sale of this site will arrest the possible supply shortfall post-2016 [and] -2017, and could prevent any supply “famine” should the “feast” of supply in 2016 [and] 2017 be eventually absorbed,” he added.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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