Government to offer hotel rooms supply in GLS programme this year
This is a first in five years, amid brighter prospects for tourism in the next few years
For the first time in five years, the Government is offering hotel rooms supply in its Government Land Sales (GLS) programme for the second half of this year amid a rosier tourism outlook for Singapore in the next few years.
On the Urban Redevelopment Authority's (URA) list of sites for sale is one at Club Street near Raffles Place, which is a hotel site, while another at Marina View allows for hotel rooms to be built.
The provision comes on the back of a 6.2 per cent growth in international visitor arrivals last year to 17.4 million people.
"Given the bright tourism prospects ahead, we believe the hoteliers would be very keen on the hotel offerings on both the Confirmed List and Reserve List," said Mr Govinda Singh, executive director of valuation and advisory for Asia at Colliers International.
"The Club Street plot sits within a high demand area in Chinatown for both corporate and leisure and plugs well into the rejuvenation of the Tanjong Pagar district nearby.
"The Marina View white site also presents good opportunities, being in the prime downtown, which has been earmarked as an exciting waterfront destination in the future."
Yesterday's release featured sites on the Confirmed List and Reserve List yielding up to 8,040 private residential units, 124,200 sq m of commercial gross floor area and 930 hotel rooms.
SUPPLY
The residential land supply in the second half of this year's GLS programme is similar to that for the first half, when the Government made available 2,775 residential units under the Confirmed List and 5,270 units under the Reserve List.
JLL national research director Ong Teck Hui noted that the focus for residential GLS sites in the second half seems to be in the central region.
"Although the three GLS sites (on the Confirmed List) could help to meet demand from developers, it is uncertain as to whether they will mitigate optimistic land prices," he said.
"They are also unlikely to dilute demand for collective sale sites, especially those in the prime districts for which there is keen interest."
The three sites are at Middle Road, Kampong Java Road near Newton Circus and Sims Drive.
A fourth is an executive condominium site.
On the reserve list is also a white site at Woodlands Square/ Woodlands Avenue 2.
URA said in its release yesterday the site will help sustain the development momentum of Woodlands Regional Centre as a commercial node outside the city.
This is line with the Government's objective of decentralising employment centres to bring job opportunities closer to homes.