Investing in a condo in Singapore brings numerous benefits, with one of the key advantages being the potential for capital appreciation. As a renowned global business hub with a robust economy, Singapore consistently attracts high demand for real estate. This has resulted in a steady rise in property prices over the years, particularly in prime locations where condos are situated. For wise investors who enter the market at the right time and hold their condo properties for the long term, substantial capital gains can be expected.
The Singapore government’s Urban Redevelopment Authority (URA) has recently announced the release of two residential Government Land Sale (GLS) sites under the Reserved List for the 2H2024 GLS Programme.The sites, Holland Plain and River Valley Green (Parcel C), are now available for application and will only be triggered for sale if a developer is able to meet the government’s minimum price requirement. Alternatively, a Reserved List site may also be put up for tender if there are multiple developers who submit prices close enough to the government’s reserve price.The Holland Plain GLS site spans approximately 169,175 sq ft and has a maximum gross floor area (GFA) of about 304,522 sq ft. If developed, it has the potential to yield approximately 280 residential units. The leasehold site has a tenure of 99 years, and is strategically located next to the Holland Link GLS site which was launched for tender on Dec 3. It is estimated to be able to accommodate 230 residential units.Meanwhile, the River Valley Green (Parcel C) site is situated next to the Great World MRT Station, which is part of the Thomson-East Coast Line. It spans approximately 123,964 sq ft and has a maximum GFA of about 433,882 sq ft. The leasehold site is estimated to have the capacity to yield around 470 new housing units.Read also: URA launches tenders for GLS sites at Holland Link and Chuan GroveAdvertisementAccording to Mark Yip, CEO of Huttons Asia, there is a limited chance that the Holland Plain site will be triggered for sale. “Developers will likely be observing the response to the Holland Link GLS site first,” he says. The tender for this plot will close in July 2025.Meanwhile, Yip also predicts that the River Valley Green (Parcel C) site is unlikely to be triggered for sale, especially given the ongoing tender for the neighbouring River Valley Green (Parcel B) plot, which is set to close in February next year. The latter site has the potential to yield 580 units, including 220 long-stay serviced apartments.It is worth noting that the site is also within close proximity to three other GLS sites which have been awarded lately. For instance, in June this year, Winchamp Investment, a subsidiary of Wing Tai Holdings, submitted the highest bid of $464 million (equivalent to $1,325 psf per plot ratio) for the development of over 400 residential units at River Valley Green (Parcel A). Similarly, in April, City Developments and Mitsui Fudosan successfully obtained Zion Road (Parcel A) for $1.107 billion (equivalent to $1,202 psf per plot ratio) after submitting the only bid. The residential project will feature 740 residential units, a retail podium, and a block comprising 290 rental apartments.On a similar note, Allgreen Properties was awarded Zion Road (Parcel B) in August for $730.09 million (equivalent to $1,304 psf per plot ratio), with a potential yield of about 610 residential units.Read also: Private residential rents up 0.8% in 3Q2024, driven by double-digit vacancy rate in the CCRAdvertisementThe abundant upcoming supply from these three sites, Yip adds, will likely result in minimal incentive for developers to trigger the sale of River Valley Green (Parcel C).