Friday, September 16, 2011

Three residential sites put up for sale

THREE residential property sites in suburban areas have been put up for sale by the Government in a move that could yield well over 1,300 new homes.
This is among the largest number of potential new homes in a single release of residential sites so far this year.

The three 99-year leasehold sites are in Punggol, Upper Bukit Timah and Yishun.

The largest plot is at the junction of Punggol Central and Edgedale Plains. The 218,035 sq ft site has a plot ratio of 3.0 and can be built up to a maximum of 654,105 sq ft.

Located in the eastern part of Punggol Town, it could yield up to 610 homes. Experts say the site could fetch a top bid of up to $210 million or $320 psf per plot ratio (ppr). The tender closes on Nov 3.

Another site at Chestnut Avenue has been tipped by analysts to be a favourite among developers because of its location within the popular Upper Bukit Timah neighbourhood. The 201,285 sq ft plot of land can be built up to 422,710 sq ft, yielding about 380 homes.

Mr Nicholas Mak, executive director of research at SLP International, expects the site to attract several major developers, with a top bid of up to $195 million, or $460 psf ppr. The tender for this site ends on Nov 24.

The third site is at Yishun Ave 1 and is 181,910 sq ft. With a maximum gross floor area of 382,011 sq ft, the plot could yield 355 units.

SLP's Mr Mak said the site could fetch a winning bid of $130 million to $145 million, which translates to $340 to $380 psf ppr. The tender ends on Nov 15.

Fears about an oversupply of homes hitting the market over the next few years appear to have injected at least some caution into the property industry.

But new home sales figures released yesterday indicate that buyers are still keen to buy, with 1,348 new homes sold last month.

Mr Ku Swee Yong, chief executive of International Property Adviser, said this is one of the reasons why he remains positive developers will still be interested in Government land sites.

Another site - at Bishan Street 14 - has been made available through the Reserve List. This means the land will come up for sale only when any interested developer commits to bidding for the site above or at a set minimum price.

The Bishan land parcel is next door to a site that was bought by CapitaLand earlier this year for a whopping $550 million or $869 psf ppr, an amount that exceeded analysts' expectations.

While some analysts feel this plot will not be triggered for sale soon, others said it could catch the attention of developers looking to increase their land banks.

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