What are URA's Reserve & Confirmed sites? How do they support your Future Home Value?
URA's Reserve & Confirmed sites
Confirmed and Reserve sites are sites released from Urban Redevelopment Authority (URA) by way of Collective En-bloc Sale (Enbloc) or Government Land Sale (GLS). While sites identified for sale on the Confirmed List (CL) are launched for sale at pre-determined dates, sites on the Reserve List (RL) are not yet ready for tender immediately – they are instead made available for application.
Here is a list of confirmed sites released with URA as the sales agent for the month of August. All of these confirmed sites are scheduled sales on pre-determined dates with monthly updates. In fact, many of the land parcels are sold through tenders.
Reserve (List) Sites
When the application process is successful, Reserve List sites will be launched fortender. These Reserve List sites can be applied for developers once detailed sales conditions are released in the eDeveloper’s Packet.
The procedures for the Reserve List system:
If a developer submits an application that includes the minimum price accepted by the Government, then a site on the Reserve List System will be put up for tender.
If the Government receives sufficient market interest for the site, launching a Reserve List site can be again considered. So this happens when more than one unrelated party has submitted a minimum price that is close to the Government’s Reserve Price.
URA is the main land sales agent for the Government. Due to URA’s involvement, land becomes available for commercial, hotel, and private residential developments in Singapore.
The Difference between “Reserve List site” and “Reserve site”
- A “Reserve site” is a site where the specific use has not been determined.
- A “Reserve List site” is a site under the Reserve List of the Government Land Sales Programme. Here sites will only be put up for tender if a developer has indicated a minimum price which is accepted by the government.
Foreign Housing Developers
Foreign housing developers who have decided to buy vacant residential land must apply for a qualifying certificate along with 10% of the land price. In order to complete the development of the residential land, the foreign housing developer will have 5 years. This is done for reason- to ensure that the foreign housing developer completes and sells all the units in the residential development.
However, it goes without saying that residential land sold under the Government Land Sales (GLS) programme is exempted from this requirement. Instead, foreign housing developers are required under the land sales conditions to sell all the dwelling houses within 2 years from the date of the Temporary Occupation Permit for the dwelling houses.
How does URA's Confirmed & Reserved list sites affect your Future Home Value?
Nearby sites to boost your property value
Real estate agents in Singapore love to see similar and comparable sites being released within vicinity of a home, regardless whether it is a Resale Condominium (condo), New Launch Condo or Housing Development Board (HDB) flat. Why is this so?
When a confirmed site is tendered nearby, the bid prices are commonly equivalent to the surrounding market prices or a slight margin lesser, perhaps due to the decaying lease of the site which requires a differential premium top up with Singapore Land Authority (SLA).
This concept works interchangbly between resale and new launch properties
Did you know this applies for new launches too!? For example, let’s have a look at the upcoming new launch condo, name ‘Lentor Modern’ to be developed by GuccoLand.
It has been 10 years since the last new launch of a private residential in the Lentor Region, ‘The Calrose’ being the previous which started preview in 2012. Fast track to the present market where we are now, the Lentor Region is set to be re-imagined into a new township, especially with the MRT line ready.
The Lentor Modern plot has been gazetted as an integrated development with the 1st storey comprising of more than 96,000 square feet (sqft) of commercial with 12,000 sqft of supermarkets and childcare centers. Can you imagie how huge is that? Find out more with me if you are interested to learn more!
Back to the topic, if you have a look at the picture above referring to the URA’s masterplan 2019. There are at least 5 more gazetted residential sites within the new Lentor Township, and a couple of the sites are already in the URA’s confirmed list for tender. Imagine a blank canvas for URA to design into a new township just as the same for Punggol before then. (refer to the above confirm site photo).
What will the future bid prices be for the future sites in Lentor?
Contact & Brainstorm with me together!