The scarcity of land parcels released to build executive condominiums (ECs) could see developers turning their attention to the plots in Canberra Link and Anchorvale Crescent under the Government Land Sales (GLS) programme, consultants say.
The Canberra Link site was launched yesterday for sale under the confirmed list of the H1 2018 GLS programme, while the site in Anchorvale Crescent was released for application under the reserve list. Sites on the reserve list will be put up for tender only when a developer has indicated a minimum price that is accepted by the Government.
They join a private residential site in Jalan Jurong Kechil, for sale on the confirmed list, and another site in Clementi Avenue 1, under the reserve list. Together, these four sites can yield about 1,920 residential units.
“Demand and supply dynamics of the EC market (depleting unsold stock and limited sites for EC development), coupled with proximity to the future Canberra MRT station, which is slated to open by December 2019, are factors that strengthen the attractiveness of the Canberra Link EC site over the Jalan Jurong Kechil site,” said JLL head of research and consultancy Tay Huey Ying.
Huttons Asia head of research Lee Sze Teck said the proximity to the future Canberra MRT station is a key selling point for the Canberra Link EC site.
So far this year, only one EC project, Rivercove Residences in Sengkang by Hoi Hup Realty and Sunway Developments, has been launched and it is a near sell-out. Another EC site on the confirmed list, in Tampines Avenue 10, is slated to be launched for tender in October.
With no new launch of EC projects for the rest of this year, interested buyers will either have to choose from unsold units or wait for the Sumang Walk EC project by the City Developments-TID Residential joint venture next year.
“The top bid for the Canberra site might come up to between $450 and $500 per sq ft per plot ratio (psf ppr),” said Mr Lee.
ZACD executive director Nicholas Mak noted that while developers are spoilt for choice with the many collective sale sites currently on offer in the private land sale, some prefer the relatively simpler and quicker land acquisition process for GLS sites.
OrangeTee & Tie head of research and consultancy Christine Sun is also expecting the EC site in Anchorvale Crescent on the reserve list to attract bidders who see strong buying demand, given the growing pool of HDB upgraders in the north-east region. More HDB flats in Sengkang and Punggol have reached the minimum occupation period in recent years.
The tender for the land parcels in Jalan Jurong Kechil and Canberra Link will close at noon on Sept 4.