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How rising land prices at GLS tenders affect homebuyers, foreign investors and the property market in Singapore

How rising land prices at GLS tenders affect homebuyers, foreign investors and the property market in Singapore

June 15, 2021

Government Land Sales (GLS) tenders play an essential role in determining the price point of property in Singapore. And recently, news of property developers’ hunger for land parcels grabbed national headlines when GLS tenders bid set a sale record for the Northumberland Road site and again at the Ang Mo Kio Avenue 1 site. But, what do these hefty bids mean for homebuyers and foreign investors? Will land prices increase for the long-term future?

In this article, we’ll talk about the steadily increasing prices of GLS tenders and how it impacts homebuyers, foreign investors, and ultimately the property market of Singapore.

1. Soaring tender prices in the Singapore property market

Recently, a bidding war for a 99-year leasehold residential site in Ang Mo Kio Avenue 1 launched by the GLS attracted an exceptional 15 bids. The tender for the residential site was successfully won and secured by a joint venture between UOL Group, Singapore Land Group, and Kheong Leong Company with a bidding price of $381.4 million, or $1,118 per-sq-ft-per-plot-ratio (psf ppr). The second-highest bid came from Titus Residential SG Pte. Ltd. with a bid of $358.9 million or $1,052 psf ppr. The third highest bid was a tie between Far East Organization, Sino Group, and Sekisui House with a bid of S$353.33 million or S$1,036 psf ppr.

With prices crossing the $1,000 psf ppr threshold, it's evident the tender prices in the Singapore property market are rapidly increasing. Whether the property developers competing in GLS programmes are newcomers who are in pursuit of establishing their portfolio or whether they're property developers who have sold out their inventory and are looking to replenish their landbanks, the stiff competition for GLS tender sites reflect a high demand for land parcels due to Singapore's land scarcity. For foreign investors and homebuyers, the consistent rise in land prices in Singapore through GLS tenders translates to an inevitable surge in property prices in the immediate future.

2. Future increase in property prices are expected to remain resilient

Year 2021's first residential government land sales tender
Image Source: straitstimes.com

Back in April, the Northumberland Road site attracted an astounding 10 bids at the GLS programme. The top bidder was Maximus Residential SG and Maximus Commercial SG, a joint venture between CDL and MCL Land, securing the residential site at  $445.888 million. This was followed by the second-highest bid from Winrich Investment offering  $421.89 million and the third-highest bid from Holland V Properties Pte. Ltd. submitting $418.777 million. Property market experts projected the robust participation and the tight competition at the Northumberland Road site would set the tone for upcoming tenders at Ang Mo Kio and Tengah Garden Walk, and their projections were accurate.

There are several driving forces behind Singapore's trend of increasingly high-priced tender sites such as Northumberland Road, Ang Mo Kio, and Tengah Garden Walk. Among them are low interest rates, generous government stimulus measures, and a strong demand for residential sites located beyond prime districts. The combination of these key points has caused land parcels to become intensely enviable among property developers. Apart from that, it's worth adding property developers who lose in GLS tenders may run the risk of increasing the price of their existing units to improve their revenue profit. Considering these major factors, we forecast the future increase in property prices in Singapore's property market to remain resilient.

Image Source: www.ura.gov.sg

3. Now is the right time to act fast and secure your residential units

With the expected rise of land prices in Singapore in the future, it would be wise to take action now and obtain residential units before property prices start to inflate. So, if you're new to residential property and are overwhelmed with the choices that are currently on the property market, don't worry! We're with you every step of the way of your real estate journey.

There are plenty of great residential properties around Singapore with attractive selling prices that might work in your favour.

We have several recommendations for leasehold executive condominiums such as OLÁ and Piermont Grand situated in District 19 which is known for being a residential area with recreational and commercial activities. It's an ideal fit for individuals with an urban Singaporean lifestyle. For those in the market for condominiums, we've got you covered too! There's Florence Residences and Affinity at Serangoon, a leasehold development located in District 19 as well. 

Additionally, we also suggest leasehold condominiums such as Normanton Park and Ki Residences situated in District 21. This residential area is perfect for families as this district is known for its prime education hub and is home to one of Singapore’s most prestigious educational institutions. Another lesser known facet of this residential area is its lush greenery which offers a delightful escape from the hustle and bustle of the city while offering easy access to suburban shopping centers. 


Finding these residential properties too hard to pass up? Here are more available properties with appealing price points.

The Jovell
Treasure at Tampines
Forett at Bukit Timah

Need our expert assistance in navigating and securing your desired property in the Singapore property market? At Property Giant, we’re here to help! Please don't hesitate to contact us at +6561006199 for further assistance.


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