When considering investing in Singapore condos, it is important to take into account the government’s property cooling measures. In recent years, the Singaporean government has implemented various measures to control speculative buying and maintain a steady real estate market. One of these measures, known as the Additional Buyer’s Stamp Duty (ABSD), imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they also contribute to the long-term stability of the market, creating a safer investment environment. It is essential to keep these measures in mind when looking to invest in a Singapore Condo as they play a crucial role in maintaining a healthy and sustainable real estate market.
On December 3, URA announced that two residential Government Land Sale (GLS) sites were released under the Reserved List of the 2H2024 GLS Programme. The two sites, known as Holland Plain and River Valley Green (Parcel C), are now available for application. If a developer expresses interest at an acceptable minimum price, the government will put them up for sale. Furthermore, a Reserved List site may be considered for tender initiation if multiple developers submit a minimum price similar to the government’s reserve price.In terms of specifications, Holland Plain has a size of approximately 169,175 sq ft and a maximum gross floor area (GFA) of around 304,522 sq ft. It has the potential to produce 280 residential units and is a 99-year leasehold site that sits alongside the recently launched Holland Link GLS site. The latter has an estimated capacity of 230 units, and submission for it closes in July 2025.
River Valley Green (Parcel C), on the other hand, is located next to the Great World MRT Station and is also a 99-year leasehold site with a size of about 123,964 sq ft. It has a maximum GFA of 433,882 sq ft and can potentially yield 470 new residential units. However, according to Mark Yip, CEO of Huttons Asia, the site is unlikely to be triggered for sale due to the ongoing tender for the neighbouring River Valley Green (Parcel B) plot. This plot can accommodate 580 units and includes 220 long-stay serviced apartments.
The River Valley Green (Parcel C) site is also in close proximity to three other recently awarded GLS sites. In June, Wing Tai Holdings’ subsidiary, Winchamp Investment, clinched the River Valley Green (Parcel A) for a whopping $464 million, or $1,325 psf per plot ratio (psf ppr). It will be transformed into a residential development with over 400 units. Furthermore, in April, City Developments and Mitsui Fudosan were awarded Zion Road (Parcel A) for $1.107 billion, or $1,202 psf ppr, with plans to explore a mixed-use project featuring 740 residential units, a retail podium, and a block with 290 rental apartment units. Lastly, Allgreen Properties was awarded Zion Road (Parcel B) in August for a sum of $730.09 million, or $1,304 psf ppr, with an estimated 610 residential units.
Considering the upcoming supply from the three aforementioned sites, Yip believes there is little motivation for developers to trigger the sale of River Valley Green (Parcel C).