PROPERTY developers will have plenty of land sites to choose from next year, with the Government releasing a wide variety in its latest land sales offering yesterday.
Residential sites, especially those in the suburban areas, were in focus as the Ministry of National Development (MND) announced its land sales programme for the first half of next year.
In an unusual move, a residential plot in Chua Chu Kang was put on the confirmed list to be sold outright.
Housing sites have been left out of the confirmed list for the past five years, as the Government slashed its land sales programme amid the market downturn.
Another two suburban sites, in Ang Mo Kio and West Coast, will go on the reserve list. These will go on sale only if developers lodge a bid at a minimum acceptable price.
'There are definitely more choices for developers,' said Mr Li Hiaw Ho, executive director of research at CB Richard Ellis.
He added that the Government's bid to tempt developers with these suburban sites may work as home buyers are expected to shift their focus to projects in non-prime residential areas next year.
Suburban homes have been lagging behind luxury residences in terms of both price and volume, leading developers to snap up prime sites and ignore the suburban plots on the reserve list.
But this also means that most developers are now running low on their stock of 99-year leasehold sites, so they may pick up more of such land, said Mr Li.
He expects the Ang Mo Kio plot to be the most attractive as it is located next to both the Ang Mo Kio Hub and the Ang Mo Kio MRT Station.
The site also has an unusually high plot ratio of 4.9 and can probably fetch around $135 million to $165 million, or up to $490 per sq ft (psf) of total floor area, added Mr Li.
However, developers looking to pick up prime land will not be left out in the cold.
A residential plot in Handy Road, near Plaza Singapura, was placed on the confirmed list, as was a white site at the junction of Shenton Way and Central Boulevard that can be used to build homes. A white site refers to one that can be used for any function.
This comes as homes in the Orchard Road and Marina Bay areas set new record prices, reaching more than $3,000 psf for both St Regis Residences in Tomlinson Road and Marina Bay Residences.
The Government will also release more residential land in the luxury enclave Sentosa Cove, outside of the official land sales programme.
More office space is also being released to ease the current supply crunch that has sent rents soaring.
An office site at Tampines was put on the confirmed list, while another at Anson Road was placed on the reserve list.
The white site in Shenton Way must also have a minimum number of offices, and it is possible that the whole site would be used for office space, consultants said.
To further meet demand for office space, the Singapore Land Authority will also lease out vacant state-owned properties outside the Central Business District for business use, the MND said yesterday.
As well, in line with the robust demand for hotel sites, three such plots were added to the reserve list yesterday.
Two are along Victoria Street, while the third is in New Bridge Road. This last is likely to be triggered for sale as it is near Chinatown and other hotels, said Mr Li.
Although the Government is providing more land in general, it is doing so cautiously, said market watchers.
Most of the sites on sale are still on the reserve list, noted Mr Colin Tan, head of research and consultancy at Chesterton International.
There are also three white sites available, allowing flexibility for developers to react to any changes in the market, said Ms Tay Huey Ying, director of research and consultancy at Colliers International.
fiochan@sph.com.sg
New sites on offer on reserve list
1. West Coast Crescent: 1.2ha residential site, to be released in April '07
2. Ang Mo Kio Ave 8: 0.64ha residential site, June '07
3. Anson Road: 0.35ha commercial site, at the junction of Anson Road and Enggor Street, March '07
4. Outram Road: 2.48ha white site, at the junction of Outram Road and Eu Tong Sen Street, June '07
5. Victoria Street: 0.75ha hotel site, at the junction of Victoria Street and Syed Alwi Road, April '07
6. New Bridge Road: 0.42ha hotel site, April '07
7. Victoria Street/Jellicoe Rd: 0.42ha hotel site, at the junction of Victoria Street and Jellicoe Road, May '07
