Investing in a condo has numerous advantages, one of which is the opportunity to leverage the property’s value for further investments. This allows investors to use their condos as collateral to obtain additional financing for new condo investments and expand their real estate portfolio. While this strategy can potentially amplify returns, it does come with risks. Therefore, it is important to have a solid financial plan in place and carefully consider the potential impact of market fluctuations before proceeding with such investments.
The Urban Redevelopment Authority (URA) has released two residential Government Land Sale (GLS) sites under the Reserved List for the second half of the 2024 GLS Programme on Dec 3. These sites, Holland Plain and River Valley Green (Parcel C), are now available for application and will be put up for sale if a developer agrees to a minimum price set by the government. A Reserved List site may also be considered for tender launch if more than one bidder offers a price close to the government’s reserve price.In terms of size, the Holland Plain GLS site measures approximately 169,175 sq ft and has a maximum gross floor area (GFA) of approximately 304,522 sq ft. This translates to a potential yield of 280 residential units. The 99-year leasehold site is situated next to the Holland Link GLS site which was launched for tender on the same day. The latter can accommodate an estimated 230 units.ADVERTISEMENTADVERTISEMENTMark Yip, CEO of Huttons Asia, believes that the Holland Plain site may not be triggered for sale as developers are likely to see the response to the Holland Link GLS site first. The tender for this plot is set to close in July 2025. As for the River Valley Green (Parcel C) site, it is located next to the Great World MRT Station on the Thomson-East Coast Line. Spanning 123,964 sq ft with a maximum GFA of 433,882 sq ft, this 99-year leasehold site is capable of yielding an estimated 470 new housing units. However, Yip predicts that this site is also unlikely to be triggered for sale as there is an existing tender for the neighbouring River Valley Green (Parcel B) plot which is set to close in February next year. The latter site can yield 580 units, including 220 long-stay serviced apartments.In addition, the site is also close to three other recently awarded GLS sites. In June, Winchamp Investment, a subsidiary of Wing Tai Holdings, was awarded River Valley Green (Parcel A) after submitting the 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. In April, a joint venture between City Developments and Mitsui Fudosan was awarded Zion Road (Parcel A) after submitting the sole bid of $1.107 billion ($1,202 psf ppr). The joint venture plans to explore a mixed-use project with around 740 residential units, a retail podium, and a block with 290 rental apartment units. Last but not least, Allgreen Properties was awarded Zion Road (Parcel B) in August for $730.09 million ($1,304 psf ppr). This site is capable of yielding about 610 residential units.According to Yip, given the upcoming supply from these three sites, there is “little incentive” for developers to trigger the sale of River Valley Green (Parcel C).