Ultimately, there are a multitude of benefits to be gained from investing in a condo in Singapore. These include a consistently high demand for such properties, the potential for significant capital appreciation, and attractive rental yields. Nevertheless, it is crucial to thoughtfully consider various factors before making a commitment, such as the location of the condo, available financing options, government regulations, and the current state of the market. By conducting thorough research and seeking the guidance of experienced professionals, investors can make well-informed decisions and optimize their returns in the dynamic real estate landscape of Singapore. Whether you are a local investor looking to diversify your portfolio or a foreign buyer in search of a stable and profitable investment, the condos in Singapore present an enticing opportunity for success.
On December 3, the Urban Redevelopment Authority (URA) launched two residential Government Land Sale (GLS) sites under the Reserved List of the 2H2024 GLS Programme. The sites, named Holland Plain and River Valley Green (Parcel C), are currently available for application and will be put up for sale if a developer indicates a minimum price that is acceptable to the government. Should more than one developer submit a minimum price close to the government’s reserve price, the site may also be considered for tender launch.
The Holland Plain GLS site, which spans about 169,175 sq ft, has a maximum gross floor area (GFA) of around 304,522 sq ft and is expected to yield about 280 residential units. This 99-year leasehold site is situated next to the Holland Link GLS site, which was also launched for tender on the same day. The Holland Plain site has the potential to accommodate an estimated 230 units.
According to Mark Yip, CEO of Huttons Asia, the likelihood of the Holland Plain site being triggered for sale is low. He believes that developers are likely to wait and gauge the response to the Holland Link GLS site first. The tender for the Holland Plain site is set to close in July 2025.
Located next to the upcoming Great World MRT Station on the Thomson-East Coast Line, the River Valley Green (Parcel C) site spans 123,964 sq ft and has a maximum GFA of 433,882 sq ft. This site is expected to yield approximately 470 new housing units. However, Yip predicts that the site is unlikely to be triggered for sale, especially with the ongoing tender for the neighbouring River Valley Green (Parcel B) plot, which is expected to close in February next year. The latter site is projected to yield 580 units, including 220 long-stay serviced apartments.
In addition, the River Valley Green (Parcel C) site is also close to three other GLS sites that were recently awarded. In June, Winchamp Investment, a subsidiary of Wing Tai Holdings, won the bid for River Valley Green (Parcel A), with a top bid of $464 million, or $1,325 psf per plot ratio (psf ppr). This site will be developed into a residential project with over 400 units.
A joint venture between City Developments and Mitsui Fudosan acquired Zion Road (Parcel A) in April for $1.107 billion ($1,202 psf ppr). The developers plan to explore a mixed-use project at the site with about 740 residential units, a retail podium, and a block containing 290 rental apartment units. Finally, Allgreen Properties clinched Zion Road (Parcel B) in August for $730.09 million ($1,304 psf ppr). This site is expected to yield about 610 residential units.
Taking into account 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 at the moment.