Urban Redevelopment Authority has put on auction two residential sites at Holland Link and Chuan Grove.
The plots form part of the 5,050 residential units that will be released under the confirmed list of the government land sales (GLS) programme for the second quarter of 2024, to satisfy rising demand for housing and ensure market stability.
The site located in Holland Link has a site size of 17,069 square meters and an area of gross floor (GFA) of 23,897 square meters.
URA estimates that the site could yield around 230 units. The plot is a maximum height of six stories.
The other plot on the confirmed list located in Chuan Grove has a site area of 15,831.5 sq m, and an maximum GFA of 47,495 sq m. It could yield approximately 555 units.
The minimum GFA is 500 sqm has been stipulated for the childcare facilities on the Holland Link and Chuan Grove locations.
The development was sold for an average price of $2,579 a square foot (psf) during its launch weekend.
It is expected that the demand for a future expansion of the Chuan Grove site to come from residents of the estates with lands located in Serangoon Gardens, Chiltern, Bartley and Serangoon Central, as well as the HDB upgraders living nearby.
In the next four years, an estimated total of 3,815 HDB flats (four-room and bigger) located in Toa Payoh are set to complete their minimum occupancy, with the Chuan Grove site being one of the options for buyers to upgrade to.
The Lorong Chuan area has had a limited supply of new homes. The most recent new home launch in the area was Cardiff Residence, which took place in 2011.
Developers may be encouraged by Chuan Park’s better-than-expected sales and are likely to place competitive bids to capitalise on the effects of spillovers from the slack demand for the area.
Market watchers anticipate that the Chuan Grove site to be fiercely contested, drawing five bidders with a top offer that could be as high as $1,250 per plot ratio (ppr).
The second confirmed site is near Brizay Park. Good Class Bungalow Area.
The most recent 99-year leasehold release in the area was Fourth Avenue Residences in January 2019. In 2024, the development’s median selling price was $2,658 for a square foot.
A GLS site in Holland was transferred to a consortium comprising CapitaLand/UOL for $1,285 a square foot annually, in May.
The Holland Link site to see one to two bidders, and a top offer of between $1,200 and $1,300 per psf.
In its announcement, URA also released two locations in Holland Plain and River Valley Green (Parcel C) for application under the reserve list.
The parcel located in Holland Plain has a site area of 15,716.9 sq m and the maximum GFA is 28,291 sq m, which can yield around 280 units. The other plot in River Valley Green (Parcel C) could be able to provide 470 homes, with an size of 11,516.6 sq m and GFA of 40,309 sq meters.
It is not likely that these two sites are going to be offered for sale.
Regarding the Holland Plain plot, he said that developers are likely to wait for the response to the Holland Link GLS site before making a decision.
The River Valley Green precinct already has other sites that have been launched to be sold.
River Valley Green (Parcel B) is currently available for tender. The deadline for submitting bids is February 2025.
The 2,090 units that will be sold if Parcel B will be sold are River Valley Green (Parcel A), Zion Road (Parcel A), and (Parcel B). There’s no incentive for developers to put the sale of the land.
The confirmed list sites are released in accordance with the schedule, without regard to demand, a site in the reserve list is put up for tender after a developer has made an offer that is acceptable to the government. It will continue to release an indefinite supply of residential units owned by private individuals in the coming GLS programs, with the availability adjusted to take into account the market’s economic and property conditions.