The Urban Redevelopment Authority of Singapore has proposed the development of new residential areas, including private residences and public housing units, in five central districts such as Pearl's Hill.
Analysts believe that these projects will be well-received, with expectations of record-high prices for private residences, while public housing units will be launched as premium units to prevent the central districts from becoming exclusive enclaves for the wealthy.
These five districts, namely Pearl's Hill, Marina South, Bukit Timah-Ma Choe, the former Jiak Kim Street site, and Happy Hill, are all situated within or near the city center, each with access to at least two subway stations, boasting prime locations and convenient transportation conditions.
Analysts anticipate that these factors will pique the interest of developers, leading to high land values, with prices expected to exceed 1,200 Singapore dollars per square foot.
According to Matthew Mak, Chief Research Officer at the property website MOGUL.sg, to maximize the value of these five districts, the government might sell some plots to developers for the construction of private residential projects.
For instance, the Bukit Timah-Ma Choe area, located in the upscale residential enclave in the city center, is highly sought after due to its proximity to numerous landed properties. If high-rise private residential projects are constructed, they are expected to be well-received, with sales prices potentially surpassing 3,000 Singapore dollars per square foot, setting a new record for the area.
Lee Si Teck, Senior Research Director at Huttons, also suggested that these five residential areas are highly anticipated, generating significant interest among both developers and buyers.
He estimates that for districts like Pearl's Hill, Marina South, and the former Jiak Kim Street site, the prices per square foot for private residential units are expected to range between 1,200 and 1,400 Singapore dollars, whereas for Happy Hill and Ma Choe, prices could exceed 1,500 Singapore dollars per square foot.
Dylan Lim, the Chief Executive Officer of ERA Realty, pointed out that these areas are expected to take more than ten years to be fully developed. This implies that while these projects will bring new vitality and opportunities to the market, developers and homebuyers need to consider long-term planning and investment strategies for these developments.
