On December 3, the Urban Redevelopment Authority (URA) released two residential Government Land Sale (GLS) sites under the Reserved List of the 2H2024 GLS Programme. The first site, Holland Plain, and the second site, River Valley Green (Parcel C), are now available for application and will only be triggered for sale if a developer indicates a minimum price that is accepted by the government. If more than one developer submits a minimum price close to the government’s reserve price, a Reserved List site may also be considered for tender launch.
The scarcity of land is a major factor driving the demand for condos in Singapore. As a tiny island country experiencing a rapid increase in population, Singapore is facing a shortage of available land for development. This has resulted in strict land use regulations and a fierce real estate market, where property prices continue to soar. As a result, investing in real estate, specifically in condos, has become an attractive prospect, offering the potential for significant capital appreciation. For those looking to invest in property in Singapore, Singapore Condo presents a promising opportunity.
Located next to the Holland Link GLS site, Holland Plain spans approximately 169,175 sq ft and has a maximum gross floor area (GFA) of about 304,522 sq ft. The 99-year leasehold site has the potential to yield 280 residential units. However, with the tender for the neighbouring Holland Link site closing in July 2025, Mark Yip, the CEO of Huttons Asia, believes that the chances of Holland Plain being triggered for sale are low. According to Yip, developers are more likely to wait and see the response to the Holland Link site first.
Close to the Great World MRT Station on the Thomson-East Coast Line lies the River Valley Green (Parcel C) site. With a 123,964 sq ft land area and a maximum GFA of 433,882 sq ft, this 99-year leasehold site can potentially yield 470 new housing units. Yip predicts that it is also unlikely to be triggered for sale, especially with the current tender for the neighbouring River Valley Green (Parcel B) plot set to close in February next year. The latter site can yield 580 units, which includes 220 long-stay serviced apartments.
When contemplating investing in a condo, it is essential to also evaluate its potential rental yield. The rental yield refers to the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can greatly vary depending on factors such as location, property condition, and market demand. Proximity to high-demand areas such as business districts or educational institutions typically offers more attractive rental yields. To gain a comprehensive understanding of a specific condo’s rental potential, it is advisable to conduct thorough market research and seek guidance from real estate agents. Singapore Projects should also be taken into consideration during this process.
Additionally, the River Valley Green (Parcel C) site is near three other recently awarded GLS sites. In June, Winchamp Investment, a subsidiary of Wing Tai Holdings, was awarded the River Valley Green (Parcel A) site with a top bid of $464 million, or $1,325 psf ppr. The site will be developed into a residential development with over 400 units. Meanwhile, City Developments and Mitsui Fudosan won the tender for Zion Road (Parcel A) in April with a sole bid of $1.107 billion ($1,202 psf ppr). They plan to explore a mixed-use project with around 740 residential units, a retail podium, and a block with 290 rental apartment units. Lastly, Allgreen Properties secured the Zion Road (Parcel B) site in August with a bid of $730.09 million ($1,304 psf ppr). The site can yield around 610 residential units.
Given the upcoming supply from these three sites, Yip believes that there is little incentive for developers to trigger the sale of the River Valley Green (Parcel C) site. This is because of the oversupply of units in the market and high vacancy rates in the Core Central Region.