On December 3, URA announced the release of two residential sites under the 2H2024 Government Land Sale (GLS) programme. The sites, Holland Plain and River Valley Green (Parcel C), are available for application and will only be sold if a developer indicates a minimum price that is accepted by the government. In the event that more than one developer submits a minimum price close to the government’s reserve price, the site will be considered for tender launch.
The Holland Plain GLS site has a land area of approximately 169,175 sq ft and a maximum gross floor area (GFA) of around 304,522 sq ft. It is estimated to potentially yield 280 residential units and has a lease period of 99 years. The site is located next to the Holland Link GLS site, which was launched for tender on December 3. An estimated 230 units can be built on this site.
According to Mark Yip, CEO of Huttons Asia, there is a low chance that the Holland Plain site will be triggered for sale. He believes that developers will wait to see the response to the Holland Link GLS site, whose tender will close in July 2025.
The other site released, River Valley Green (Parcel C), is situated next to the Great World MRT Station on the Thomson-East Coast Line. The 99-year leasehold site has a land area of 123,964 sq ft and a maximum GFA of 433,882 sq ft, which can potentially yield 470 new housing units.
Yip predicts that this site is also unlikely to be triggered for sale, considering the ongoing tender for the neighbouring River Valley Green (Parcel B) plot, which will close in February next year. River Valley Green (Parcel B) can accommodate 580 units, including 220 long-stay serviced apartments.
River Valley Green (Parcel C) is also located near three recently awarded GLS sites. In June, Winchamp Investment, a subsidiary of Wing Tai Holdings, submitted the top bid of $464 million, or $1,325 psf per plot ratio (psf ppr) for River Valley Green (Parcel A). The winning bid will be used to develop a residential project with over 400 units.
In April, City Developments and Mitsui Fudosan jointly won the tender for Zion Road (Parcel A) with the sole bid of $1.107 billion ($1,202 psf ppr). They plan to develop a mixed-use project with approximately 740 residential units, a retail podium, and a block with 290 rental apartment units.
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Lastly, Allgreen Properties was awarded Zion Road (Parcel B) in August for $730.09 million ($1,304 psf ppr). The 610-unit site is expected to yield around 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.