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\nGovernment urged to make launches of prime location flats less frequent, Pine Grove GLS site attracts five bids, Dunman Road site gets two and more31st\u00a0May to 6th June 2022
\nAnalysts have urged the Government to make the launches of projects under the Prime Location Public Housing (PLH) flats less frequent while ensuring that they are located within the city centre and offer bigger units. Meanwhile, the tender closing for two state-owned sites showed developers being cautious about their land acquisitions, amid the sombre economic outlook as well as the rising prices and interest rates.
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\n1) Government urged to make launches of prime location flats less frequent
\nAnalysts have urged the Government to make the launches of projects under the PLH model less frequent while ensuring that they are located within the city centre and offer bigger units, reported TODAY.
\nThis comes after the latest PLH projects registered modest take-up rates compared to the first two launches under the new scheme in November 2021 and February this year.
\n\u201cSome people may not mind the longer minimum occupancy period and other more stringent selling criteria because they may feel that such flats are exclusive, well-located and potentially can fetch quite good capital appreciation or rental returns in the future,\u201d said Orange Tee & Tie\u2019s Senior Vice-president of Research and Analytics Christine Sun.
\n\u201cHowever, when there are many of these flats being released at such a short period and in close succession, some people may feel that these flat types may not be as exclusive as earlier expected.\u201d
\nHuttons Asia\u2019s Senior Director of Research Lee Sze Teck believes that buyers were not sold on the idea of PLH flats outside the city centre.
\nRiver Peaks I & II was the first BTO project launched under the PLH model. The Nov 2021 Central (Rochor) BTO\u00a0flats saw an overall application rate (non-elderly applicants) of 10.3 for 4-room flats. In comparison, the overall application rate (non-elderly applicants)\u00a0for the Bukit Merah and Queenstown May 2022 launches was half that,\u00a0at\u00a05.4 and 4.4 respectively for 4-room flats.
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\n2) Prime location projects see weaker-than-expected demand
\nGhim Moh Ascent, the Queenstown May 2022 HDB BTO flats released under the PLH model. Source: HDB
\nThe two public housing projects in Yishun and Jurong West received keener interest than the Bukit Merah and\u00a0Queenstown projects under the new PLH model, reported\u00a0TODAY.
\nAnalysts attributed the popularity of the Build-To-Order (BTO) flats in Yishun and Jurong West to the shorter waiting times of only 39 months and attractive locations. Notably, both projects are near MRT stations.
\nThe new PLH projects, on the other hand, are located further from the city centre and have waiting times of up to five years.
\nThe launches of multiple PLH projects in quick succession may have taken away the projects\u2019 \u201cexclusivity\u201d in the eyes of potential buyers.
\nIn this May 2022 BTO exercise, the Yishun launch was the most sought after project; the overall application rate (non-elderly applicants)\u00a0for 4-room flats was 12.2. The Toa Payoh and Jurong West launch saw overall application rates (non-elderly applicants) of 10.9 and 7.4 respectively for 4-room flats.
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\n3) Pine Grove GLS site attracts five bids, Dunman Road site gets two
\nThe tender for the two plots at Pine Grove (Parcel A) and Dunman Road was concluded today by the Urban Redevelopment Authority (URA). Source: URA
\nThe tender closing for two state-owned sites showed developers being cautious about their land acquisitions, amid the sombre economic outlook as well as the rising prices and interest rates.
\nWith an area of 22,534.7 sq m, the land parcel at Pine Grove received five bids. According to the\u00a0URA,\u00a0the top bid was $671.5 million or $1,318 per sq ft per plot ratio (psf ppr) submitted by an entity of UOL.\u00a0It was higher by just $800 than the second-highest bid \u2013 making it one of the closest fights in state land tenders.
\n\u201cThe close bids reflect the need from developers to quickly replenish their landbank with attractive sites, especially in an area where there has not been a launch in more than ten years,\u201d said Huttons Asia.
\nThe larger 25,234.3 sq m site at Dunman Road, on the other hand, received two bids, with the top bid of $1.28 billion or $1,350 psf ppr coming from Sing-Haiyi Jade.
\nOnce launched, both projects are expected to achieve average selling prices of more than $2,300, said Edmund Tie\u2019s Head of Research and Consulting Lam Chern Woon.
\nThe government has released the Confirmed and Reserve sites for the 2H2022 Government Land Sales (GLS) Programme. There\u00a0are six sites on the Confirmed List: Bukit Timah Link, Hillview Rise, Lentor Gardens, Marina Gardens Lane, Tengah Plantation Loop (EC), and Tampines Avenue 11. The size, location, and use of the sites are varied,\u00a0giving developers much choice.
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\n4) Jansen Mansions up again for collective sale, price increased to $18.9mil<\/p>\n